Foreign Relations of the United States: Diplomatic Papers, 1943, The American Republics, Volume V

810.24/229

The Secretary of State to the Canadian Minister (McCarthy)

Washington, October 5, 1943.

Sir: I have the honor to refer to the concluding paragraph of the Legation’s note of April 24, 1943²⁶ regarding the desirability of establishing a formal joint committee in Washington to handle the numerous mutual problems arising out of the United States plan for decentralized control of exports to the other American republics.

This matter has been fully discussed by representatives of the Department of State and the Canadian Legation during recent months, and the further conclusion has been reached that the scope of such a committee should include all war-time export matters of mutual concern to the two governments, without restriction as to areas or commodities.

I am accordingly enclosing for your consideration a draft of the suggested terms of reference for a United States–Canada Joint Exports Committee, which may be established immediately upon the receipt of the concurrence of the Canadian Government.²⁷

Accept [etc.]

For the Secretary of State:

Dean Acheson

[Enclosure]

Draft of Proposed Terms of Reference for a United States–Canada Joint Exports Committee

1. The United States-Canada Joint Exports Committee has been established by agreement between the United States and Canadian Governments as a war-time measure to ensure the maximum coordination of exports from the two countries of non-military goods needed by third countries. In its deliberations this Committee shall be guided by the underlying policy of both governments, that no advantage should be taken by the government or by nationals of either country at the expense of the government or nationals of the other, either in war-time trade or with respect to post-war trading opportunities. In this connection the post-war trading position of other countries shall be given due consideration. Furthermore the Committee will seek to preserve and protect the normal functioning of private traders to the fullest possible extent consistent with the most effective prosecution of the war.

2. The principles underlying this coordination are as follows:

(a) that when considering the minimum essential requirements of third countries of commodities in short supply they should be met from the most economical source in the interest of the United Nations’ war effort, but where the overriding interests of the war effort do not otherwise dictate neither country shall reexport goods of the other country in short supply.

(b) that there shall be no overlapping in shipments resulting in excess supply to any particular area;

(c) that all relevant factors of foreign and commercial policy are taken into account in the formation of joint export programs;

(d) that where the overriding interests of the war effort do not otherwise dictate, all exports of the two countries shall be maintained in equitable proportion to peacetime exports in cases where both have previously been sources of supply;

(e) that the technical licensing and shipping control procedures of the two countries shall be kept in harmony so far as is practicable or necessary.

3. The Committee meets under the chairmanship of the Department of State and includes on the part of the United States permanent representatives from the Department of State and the Office of Economic Warfare; on the part of Canada it includes permanent representatives from the Canadian Legation in Washington. Representatives of other agencies of the two Governments having special knowledge of the problems in hand, or representatives of other supplying countries, may be invited to attend whenever the Committee deems necessary.

4. The Committee is concerned with exports of either raw materials or manufactured goods, whether or not in scarce supply, which both countries are in a position to supply to third markets.

5. Where it is necessary to establish an agreed joint export program for any commodity or area the Committee assembles from all available and mutually acceptable sources full data on the minimum essential requirements of third countries or areas dependent upon imports from the United States and Canada, with a view to determining the net global demand on each of the two economies for each given commodity, due regard being paid to any alternative source of supply.

6. Agreed export programs will normally be formulated on a calendar year basis and will remain in effect until revoked, amended, or superseded by mutual agreement. Each program shall become effective as of the date of transmission of the program to the respective licensing or shipping authorities of the two Governments.

7. In addition to such export programs, the Committee may at the instance of any permanent member place on the agenda special problems relating to the supply of particular areas or to particular export licensing or shipping controls of either Government.

8. The Committee will establish and maintain close relationships with the combined boards and other combined organizations concerned with foreign civilian requirements. The precise nature of these relationships is left for future determination.

26. Not printed.
27. In its note No. 529, October 9, 1943, the Canadian Legation expressed the concurrence of the Canadian Government in the proposal to establish a joint exports committee (810.24/368).