394.31/3–1751: Telegram

The Acting Chairman of the United States Delegation to the Torquay Conference (Corse) to the Secretary of State


560. Eyes only Beale. Re Deltel 552. You may wish use fol points; in inter-agency discussions or memo SecState to Pres covering memo from chairman TAC. See also squibs sent Spiegel Mar 10.1

Reduction recommended cheese less than maximum legally possible, CCC surplus stocks now absorbed by trade, can unlikely obtain any immediate benefit in view their failure meet UK purchase commitments. Similarly birch plywood reduction is less than maximum permissible and this material now short supply likely remain so for foreseeable future. Aluminum concession even more inconsequential in terms immediate effects trade but in addition to pol importance to Canad wld provide dollars and wld lay basis economic use resources as between two countries conforming to announced US policy in reaffirmation Hyde Park Agreement last fall.2 All these concessions share [Page 1280] characteristic they unlikely affect immediate situation US and Canad producers but of highest importance US and Canad in long run and hence time particularly opportune obtain great deal such offers. Shld be remembered also Canad position includes dropping requests cattle, potatoes, ground fish fillets, paper, soybean oil and linseed oil cake and meal, items of key interest to Canada.

Re birch plywood domestic production 1947 146.2 million square feet, later data not available but demand strong. By comparison imports 1947 23.3 million square feet, less in 1948 and 1949 but increased to 46.8 in first eleven months 1950 result rearmament program and shortage building materials. Domestic industry also in strong position result general expansion uses plywood and special demands for radio television cabinets. Canad attaches disproportionate importance this concession account their desire for concession substantial value to an eastern industry.

Breakdown of negots with Canad might have seriously adverse effect on Canad enthusiasm for cooperation with US in the joint defense program for integration of North Amer econ resources under the principles of the Hyde Park Agreement as reaffirmed last October.

  1. Reference not clear
  2. This refers to the industrial mobilization agreement effected by an exchange of notes between the United States and Canada at Washington on October 26, 1950 (1 UST 716). For text of the “Hyde Park Agreement”, that is the Statement of Principles for Economic Cooperation annexed to the “United States note, see Department of State Bulletin, November 6, 1950, p. 743. For text of the original Hyde Park Agreement of 1941, see ibid., April 26, 1941, p. 494.