561.35E1A/1440: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Winant)
4133. For Steere from Hawkins. British proposal for renewal of sugar agreement is much as anticipated in your 3691 [3961] of May 16. Memorandum presented by Magowan on May 178 states that while [Page 993] the U.K. might have seen advantages in allowing the agreement to lapse, it would agree to renewal for 1 year provided that clauses are inserted making it quite clear that the terms of the agreement shall be inoperative for the duration of the war and the period of shortages succeeding it and giving recognition to the fact that the agreement will require revision on the basis of whatever agreement is reached by the United Nations on general principles of commodity policy. The memorandum states further that the British Government, in agreeing to extend the present agreement does not endorse any claim that producing areas which have been expanded under war conditions should have any vested right to retain their increased production, in more normal times. British were assured that the Department agrees substantially with their viewpoint regarding the position of expanded areas. The Department’s position as regards renewal of the agreement is not yet entirely clear. You will be informed as soon as a decision is reached. [Hawkins.]
- Memorandum presented by J. H Magowan, British Minister at Washington, not printed.↩