611.4731/469: Telegram

The Minister in Australia (Johnson) to the Secretary of State

231. My telegram No. 230, December 27, 10 a.m. I sought enlightenment from Colonel Hodgson on purport of note and from what he told me I gather that Commonwealth Government has given up any hope of concluding a trade agreement with the United States as it appears to believe that present political trend in the United States would be opposed to conclusion of such an agreement with concessions on wool and meat which are of importance to Australia.

Commonwealth Government is disappointed because it had hoped to conclude such an agreement prior to any general or multilateral agreement under article number 7 which it believes will involve Australia in tariff reductions without any benefits to Australia. Commonwealth Government is disappointed that it has met with nothing but discouragement in matter of trade agreements from United Kingdom in spite of the fact that it has made concessions to aid United Kingdom in seeking trade understandings with the United States [Page 119] among which concessions Hodgson names placing United States on most-favored-nation basis in regard to Australian tariffs.

Johnson