611.4731/222: Telegram

The Consul at Sydney (Doyle) to the Secretary of State

No. 424

Sir: I have the honor to refer to my Despatch No. 417 of May 13, 1937 (File No. 631) entitled “Interview with the Minister for Trade and Customs, Colonel White”.8 As’ stated in that despatch, I had informed Colonel White, in reply to his direct question “when the United States was going to do something with reference to the present trade situation”, that it was impossible for the United States to institute trade treaty negotiations with a country which at the moment was discriminating against American commerce. I made no further comment, assuming that he was familiar with the subject matter, such as the tenor of the interview of Consul General Moffat with Sir George Pearce,9 reported in his despatch No. 215 of June 3, 1936 (File No. 631) entitled “Interviews with Sir George Pearce and Sir Henry Gullett regarding Australia’s decision to restrict and divert American trade.”10

I had told Colonel White that I would send him a copy of the Act.11 I was, of course, aware that there was no specific provision in the Act against opening negotiations with a country which had discriminated against our commerce. There follows the text of a letter received from Colonel White, dated May 19, 1937, together with the text of my reply, dated May 24, 1937:

“Commonwealth Offices,

Melbourne, C. 2.

19th May, 1937.

“My Dear Consul: I acknowledge receipt of your letter of May 15th, 1937, under cover of which you forwarded a copy of the amendment, approved on June 12th, 1934, of the Tariff Act of 1930, which authorises the conclusion of trade agreements by the United States with foreign countries.

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“I have perused the extract with interest, and note that its provisions do not preclude the opening of negotiations for the conclusion of commercial agreements with countries which discriminate against any of the products of the United States. On the contrary, the President is empowered under sub-section (a) of section 350 to enter into foreign trade agreements ‘whenever he finds as a fact that any existing duties or other import restrictions of the United States or any foreign country are unduly burdening and restricting the foreign trade of the United States.’

“If the enclosure which you were good enough to forward contains the only authority to the President bearing on the subject, it would seem that no obstacle exists to the conclusion of a mutually satisfactory trade agreement between the United States Government and the Government of the Commonwealth of Australia.”

“American Consulate General,

Sydney, Australia.

May 24, 1937.

“Dear Colonel White: The receipt is acknowledged of your letter of May 19, 1937, concerning the provisions of the Act of June 12, 1934, regarding the conclusion of trade agreements between the United States and other countries. I have referred the matter to the Department of State, Washington, D. C.”

Respectfully yours,

Albert M. Doyle
  1. Not printed.
  2. Australian Minister for External Affairs.
  3. Not printed, but see telegram of June 1, 1936, 6 p.m., from the Consul at Melbourne, Foreign Relations, 1936, vol. i, p. 755.
  4. Trade Agreements Act of June 12, 1934; 48 Stat. 943.