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J. 333305-MONO-State
Galley 312
UNCORRECTED GALLEY PROOF
With the British
Informal and exploratory Article VII conversations, covering trade
barriers, commodity arrangements and cartels, were held with British
experts over a year ago. Although these talks have not been re-
sumed, our Economic Counselor at London is currently sounding
out the direction of recent British thinking on the various topics.
When discussions are resumed, they should be on a more definitive
and formal basis than the exploratory talks in 1943. What is needed
now is a meeting between full delegations, headed by persons of
ministerial rank (Mr. Clayton for the U. S. delegation), which will
be in a position to speak authoritatively with regard to the policies
which their respective governments will support in wider United
Nations discussions and before their legislatures.
With regard to the position of the United States in these discus-
sions, the President has already approved the policy recommended
by the Executive Committee on Economic Foreign Policy with
respect to intergovernmental commodity agreements. The Presi-
dent has also received from the Executive Committee a tentative
statement of policy with regard to international cartel practices.
The Committee now has under consideration detailed proposals
dealing with trade barriers and it is expected that recommendations
can be submitted to the President shortly.
Renewal of discussions of these matters with the British as soon
as possible is of the greatest importance. However, there is reason
to believe that the British cabinet will be reluctant to give the neces-
sary clearance, primarily because of the opposition of a few members
to the trade-barrier objectives of Article VII and because of the
failure to perceive that these objectives are an essential and integral
part of the broader plan, set out in Article VII, for measures "di-
rected to the expansion, by appropriate international and domestic
measures, of production, employment, and the exchange and con-
sumption of goods." It is believed that even though the majority
of the cabinet may be favorable to these discussions, they are un-
likely to make a strong stand unless they are convinced that the
United States objectives in the trade barrier field are not limited to
the State Department but are also shared by the President and have
an important place in his general economic program, and unless the
Prime Minister, who has been preoccupied with war and political
problems, gives the matter his personal attention.
With the Russians
Although we have issued repeated invitations, we have made no
headway in getting together with the Russians, even on an exploratory
basis. We are ready to have exploratory talks with the Russians
now, at the technical level. When we are ready to have formal dis-
cussions with the British we will also be in a position to schedule
formal discussions with the Russians and others.
Recommendations
1. It is recommended that the President express to Mr. Churchill
his strong personal interest in Article VII and that he stress with him
the critical importance of early discussions between ourselves and the
British, on the more definitive basis indicated above, in preparation
for a United Nations trade conference. It is recommended that the
President urge upon Mr. Churchill the view that action in the trade-
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"ocrText": "J. 333305-MONO-State\nGalley 312\nUNCORRECTED GALLEY PROOF\nWith the British\nInformal and exploratory Article VII conversations, covering trade\nbarriers, commodity arrangements and cartels, were held with British\nexperts over a year ago. Although these talks have not been re-\nsumed, our Economic Counselor at London is currently sounding\nout the direction of recent British thinking on the various topics.\nWhen discussions are resumed, they should be on a more definitive\nand formal basis than the exploratory talks in 1943. What is needed\nnow is a meeting between full delegations, headed by persons of\nministerial rank (Mr. Clayton for the U. S. delegation), which will\nbe in a position to speak authoritatively with regard to the policies\nwhich their respective governments will support in wider United\nNations discussions and before their legislatures.\nWith regard to the position of the United States in these discus-\nsions, the President has already approved the policy recommended\nby the Executive Committee on Economic Foreign Policy with\nrespect to intergovernmental commodity agreements. The Presi-\ndent has also received from the Executive Committee a tentative\nstatement of policy with regard to international cartel practices.\nThe Committee now has under consideration detailed proposals\ndealing with trade barriers and it is expected that recommendations\ncan be submitted to the President shortly.\nRenewal of discussions of these matters with the British as soon\nas possible is of the greatest importance. However, there is reason\nto believe that the British cabinet will be reluctant to give the neces-\nsary clearance, primarily because of the opposition of a few members\nto the trade-barrier objectives of Article VII and because of the\nfailure to perceive that these objectives are an essential and integral\npart of the broader plan, set out in Article VII, for measures \"di-\nrected to the expansion, by appropriate international and domestic\nmeasures, of production, employment, and the exchange and con-\nsumption of goods.\" It is believed that even though the majority\nof the cabinet may be favorable to these discussions, they are un-\nlikely to make a strong stand unless they are convinced that the\nUnited States objectives in the trade barrier field are not limited to\nthe State Department but are also shared by the President and have\nan important place in his general economic program, and unless the\nPrime Minister, who has been preoccupied with war and political\nproblems, gives the matter his personal attention.\nWith the Russians\nAlthough we have issued repeated invitations, we have made no\nheadway in getting together with the Russians, even on an exploratory\nbasis. We are ready to have exploratory talks with the Russians\nnow, at the technical level. When we are ready to have formal dis-\ncussions with the British we will also be in a position to schedule\nformal discussions with the Russians and others.\nRecommendations\n1. It is recommended that the President express to Mr. Churchill\nhis strong personal interest in Article VII and that he stress with him\nthe critical importance of early discussions between ourselves and the\nBritish, on the more definitive basis indicated above, in preparation\nfor a United Nations trade conference. It is recommended that the\nPresident urge upon Mr. Churchill the view that action in the trade-"
}