840.50/10–1144
The British Embassy to the Department of State
Memorandum
His Majesty’s Government in the United Kingdom have considered Mr. Acheson’s letter of September 12th to Sir Ronald Campbell, on the question of economic agreements with the European neutrals in the transitional and post-war periods, and are glad to note that the United States Government agree generally that arrangements along the lines suggested by His Majesty’s Embassy on the 24th August will be required. His Majesty’s Government concur in the view that the agreements should be for a short period only, and that they should be limited to cover as short a list of commodities as possible.
His Majesty’s Government propose that representatives of the two Governments should proceed immediately to draw up, in respect of each of the four neutral countries concerned,10 detailed recommendations, covering the year 1945, in regard to:—
- (a)
- Commodities in respect of which we should require supply commitments from the neutrals for the purpose of meeting the urgent requirements of the United States and British Supply Departments and; [Page 143] of the liberated areas. As far as possible, agreement should be reached on specific quantities and reasonable prices and on provision for exemption from unreasonable export taxes.
- (b)
- Commodities in short supply, of which the sources are not wholly under the control of the United Nations and in respect of which agreement should therefore be reached with the neutrals regarding the quantities to which their purchases will be restricted, and the methods by which coordinated buying shall be secured. This latter point is essential in order to prevent unregulated buying of certain key commodities such as hides and vegetable oils from dislocating the whole supply position.
- (c)
- Commodities in short supply and under the control of the United Nations, in respect of which allocations could be made to the neutrals provided they are ready to meet our requirements.
Detailed examination of the list of commodities to be covered has already been initiated in London, and it is hoped very shortly to submit more detailed proposals for consideration by the United States Government.
While it is recognised that further examination will need to be given to the timing of the approach to the individual neutral countries, His Majesty’s Government consider that it is becoming urgent that agreements along the proposed lines should be concluded as soon as possible. The buying operations of certain of the countries concerned are already having a disturbing effect in certain markets, while arrangements regarding certain supplies from the neutrals, together with the questions of the imports of overseas materials which they will require in order to be able to make such supplies available, call for urgent decision. His Majesty’s Government suggest, therefore, that detailed discussion between representatives of the two Governments shall be initiated without delay with a view to agreeing [to] proposals to be negotiated in due course with the neutral governments.
In addition to the programmes covering specific commodities, it is hoped shortly to submit for the consideration of the United States Government proposals regarding the controls which it will still be necessary to maintain over the movements of goods, both to and from the European neutrals, in implementation of the proposed trade agreements, and also of any other agreements or controls that may be required in connection with shipping, the flight of war criminals, loot and enemy assets.
His Majesty’s Government agree that it is highly important that the Russian and other Allied Governments concerned should be kept fully advised of our proposals, and they suggest that as a first step our two Governments should agree on the terms of the communication which should be made in the near future to the Soviet Government.
- Portugal, Spain, Sweden, and Switzerland.↩