The Ambassador in the United Kingdom (Douglas) to the Secretary of State
1472. Foreign Office has indicated informally to Embassy in advance of formal letter replying our representations that Cabinet yesterday considered MFN of Japan. Decided inform US Government that His Majesty’s Government cannot consider MFN for Japan until yen exchange rate established and experience gained with it. Foreign Office has nothing to add to this.
In our opinion this statement represents form of words behind which lies basic British fear Japanese textile competition already described fully in our reports. This decision also reflects full discussion among British Government Departments and must be accepted as conclusive British attitude for considerable period at least through 1949, particularly since this is an election year.
Sent Department 1472, repeated Annecy 2 for USDel GATT.