394.31/3–2951: Telegram

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

secret
priority

621. In five-hour discussion last night with Wilson, Holmes, Leckie1 and Casdagli, there was no significant change in UK position. They continued insist their offers good, and wld buy the concessions they want from US, including all the dollar earning products. They would not consider granting agricultural concessions unless Commonwealth releases were freely obtained.

We reiterated our firm conviction that agreement on basis existing UK offers impossible because in our view those offers wld not justify including important dollar earning items without which agreement wld be unacceptable to UK and we wld not consider such agreement useful.

We asked Brit whether they had official reply from Australia refusing preference releases, since we did not have such. They said they did not, but were sure it wld be “no”. In answer to direct question, Wilson said if Australian reply favorable, i.e., granting releases, UK might make further offers to US altho they wld have to consider serious domestic political problems.

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Meeting concluded with both sides indicating there was little hope of any agreement, but Wilson said it wld be premature to make definite decision until Australian reply recd. Australian position therefore offers only hope of successful conclusion of our negots with Brit Commonwealth. Request this be made clear to Australia in every possible approach.

Just informed Ottawa has made approaches highest level UK and other Dominions.

Sent Dept 621, rptd info Canberra unn, London 244.

Corse
  1. J. Leckie, Adviser on Commercial Policy, British Delegation to the Torquay Conference.