611.4131/9–1945: Telegram
The Ambassador in the United Kingdom (Winant) to the Secretary of State
[Received 11:59 p.m.]
9701. 1. Liesching has informed Penrose that the party which will leave Saturday on Queen Mary will consist of Liesching, Shackle and [Page 128] Andrew, Board of Trade; Bobbins, Cabinet Secretariat; Enfield, Ministry Agriculture; Clauson,43 Colonial Office. Young will act as secretary. If necessary a Ministry of Food official may be added from Washington Food Mission.
2. Liesching said that he would have liked the group to have been smaller but felt it was necessary to have officials from Agriculture and Colonial Office, particularly in latter case because of importance of colonial raw materials. He expressed the hope that US group taking part in talks would be kept as small as practicable or alternatively at least that the resolution of knotty points should be done by a small group.
3. Regarding basis for commercial policy discussion Liesching said UK officials would not favor working on a suggested draft convention or even a summary of a convention such as we had given them.44 They considered that such a document was of great value for use at later stage but that the forthcoming talks should be centered on the outstanding issues and especially those on which there were difficulties. A short statement on these outstanding questions would be a more appropriate basis for discussion than any detailed draft. Liesching’s desire for a small group is partly related to his desire to settle outstanding issues of principle before entering on technicalities.
4. Liesching reiterated uncompromising UK opposition to any provision for export subsidies on commodities in world surplus. As regards agricultural proposals he thinks that the techniques developed in US in recent years are not altogether suitable for dealing with the problems of a number of other countries including UK. So far as change of government here was concerned the interests of producing classes, including agricultural labor in reasonable stability was represented in the Labor Govt but so also were the interests of consumers in adequate nutrition for the workers.
5. Regarding preferences he indicated that UK officials would take an uncompromising stand that preferences must be placed in similar framework of discussion with tariffs. If there was no general formula on tariffs there could be none on preferences. He did not however oppose the suggestion that there was an obligation to reduce them initially in greater proportion than tariffs and to recognize elimination as the objective when mutual obligations in other directions were met. He repeated that the political importance in UK of dealing carefully with this question was paramount.
6. Liesching said that commercial policy has been put before Ministers in terms of certain general principles and officials were authorized [Page 129] to enter into discussions on basis of a general instruction. He added in strict confidence that Ministers who understood the issues best as well as officials were convinced that it would be unwise at this stage to review the subject in detail with the whole Cabinet. Liesching did not mention names but Cripps and Dalton may be assumed to be among the Ministers whose judgment was referred to. It should be noted that the small War Cabinet has been dropped and the present Cabinet consists of about 20 Ministers. The UK officials will within their general terms of reference aim at working out lines of agreement in Washington which they can recommend to Ministers for adoption.
7. Andrew Board of Trade will specialize on cartel questions in the discussions. Stirling will remain in London and Helmore will return here when the group reaches Washington. Meade has taken Bobbins’ place as head of Economic Section of Cabinet Secretariat. Robbins remains as advisor. He will return to University perhaps at end of year.
8. Liesching referred to the serious shortage of man power in Board of Trade and throughout Whitehall. All officials concerned in article VII talks have for years carried a heavy load of work on the war economy quite apart from long term economic questions. Many are greatly fatigued. Great efforts are being made to recover pre-war civil servants who have been mobilized or have served in other capacities abroad. But the process of recovering them is slow. There were few exemptions from military service and the civil service was closely combed. Liesching is seriously disturbed at the scarcity of experts on tariff negotiations.
9. Some appraisal of the general position here with reference to the commercial and financial talks will follow.