641.5531/15: Telegram

The Chargé in the United Kingdom ( Matthews ) to the Secretary of State

1396. I have now received the promised memorandum on present negotiations for a renewal of the Anglo-Belgian economic accord (“purchase agreement”) on the Belgian Congo referred to in my telegram 1362, March 21, 2 p.m. The following is a summary of the pertinent paragraphs of this memorandum:

Since the expiration of the previous purchase agreement on August 31 last certain new factors have become operative. In the light of developments in the Far East the importance to the war effort of the Allies of many of the raw materials produced in the territories of West Africa “has been enormously enhanced”. The British Government has accordingly pressed the Belgian Government to increase production of wolfram, tin, copper, palm oil and rubber. The Belgian Government is prepared to do all it can to stimulate production but is find[ing] it increasingly difficult to bring effective pressure to bear on Congo producers in the face of apparently conflicting competitive offers from Allied buyers.

It was agreed in the first purchase agreement that in general Congo produce should be granted treatment with respect to price and customs duties not less favorable than that accorded to produce of British colonies. The discussions for the renewal of the agreement have likewise been based on this principle. In view of the fact, however, that “Congo producers have received offers from the United States for example for palm oil and rubber at prices of pounds 40 to pounds 50 and 14 pence, respectively, as against United Kingdom prices of pounds 18 and 8½ pence, the Belgian Government finds itself in a difficult position. This matter, which in view of its repercussions, political and economic, in all West African territories is of considerable importance, has been taken up urgently with the United States Government through the appropriate channels.” (In this connection please see Embassy’s telegram number 1273, March 17, 11 p.m.)3

A further obstacle, continues the memorandum, has been the difficulty in the absence of “any coordination of orders and programs on the Belgian side” of assessing and meeting Belgian requirements of machinery, [Page 4] steel and other goods essential for the maintenance and increase of production in the Congo area. The British hope that this difficulty will be eliminated through the submission by the Belgian Government of a comprehensive program covering its essential requirements for the next 12 months.

While the memorandum does not so state, I understand that an additional difficulty arises from the fact that the Belgians would rather have dollars than pounds.

Matthews
  1. Not printed.