Office of the Historian

93. Memorandum of Conversation0

USDel MC/3
March 23, 1959.1

SUBJECT

  • General Trade Matters and Heavy Electrical Equipment

PARTICIPANTS

  • Prime Minister Macmillan
  • Foreign Secretary Lloyd
  • Ambassador Caccia
  • Mr. Dillon

The Prime Minister expressed the great concern of the United Kingdom over the heavy electrical case now before the OCDM. He said that if there was an unfavorable decision in this case the UK would be required to take some sort of retaliatory action. The Prime Minister then pointed out the great need of the UK for trade and the difficulty which the UK would have if they were not allowed to sell their products in the world market, and particularly in the United States. In reply, I reminded the Prime Minister of the fact that UK dollar imports to the United States had increased over the past year by about 18% and that in the first two months of 1959 they were running about 20% over the similar months in 1958. Therefore, I did not think the U.S. record in the trade field was at all bad as far as the UK was concerned. I recognized that an adverse decision in the heavy electrical case would have a larger impact on the UK than previous actions which had caused concern. I also explained to the Prime Minister the procedures which would be followed in coming to a decision on the heavy electrical case and the probable time factor. The Prime Minister asked Ambassador Caccia if there was anything further the British should do in making known their concern and stated that he had spoken to the President about the seriousness of this particular matter.2 He said this was by far the most important matter in our trade relations at the moment. Ambassador Caccia said that he did not think there was anything additional for the UK to do at this time as he thought we were well aware of the UK attitude. I confirmed that we had received a full expression of the UK position from the British Embassy and did not think anything else was required.

  1. Source: Department of State, Central Files, 411.4141/3–2359. Confidential. Drafted by Dillon.↩
  2. The conversation was held at the British Embassy. Regarding Macmillan’s visit, see footnote 2, Document 92.↩
  3. See Document 19.↩