611.4131/1850
The British Ambassador (Lindsay) to the Secretary of State
Dear Mr. Secretary: Immediately on receiving your letter of the 6th [5th] October and the accompanying documents I referred them to my Government, and I am now instructed to forward to you the attached memorandum63 setting out their decisions on the major points outstanding. It is for your Government to decide on this final offer as a whole.
I would particularly draw your attention to the fact that I am now authorised to offer free entry for lard, provided that this is the one [Page 69] outstanding concession which would enable your Government to conclude the proposed Agreement.
I venture to point out that, including the concessions now proposed, we have offered reductions amounting to 33⅓% or more of the duties on the great bulk of the agricultural requests in the United States “essential” list and we are offering free entry in four cases (wheat, canned grapefruit, lard, and grapefruit and orange juices), the first three of which the United States regard as of outstanding importance. In fact the only items in this category on which we have been unable to meet requests for reductions of duty are dried prunes, apricots and raisins, and canned peaches, pears and apricots; on these we have offered consolidation of the existing duties together with an assurance of sympathetic consideration for any reductions which the United States Government may subsequently agree with the Dominions concerned.
In addition we have agreed to a large increase for three years in the United States quota for hams, and to maintain hams, cotton and maize on the free list.
On lumber, we are ready to meet in principle the latest United States requests in spite of the serious sacrifice of revenue and of the great administrative difficulties involved. We have gone as far as is possible on tobacco, and on doors and patent leather (the only remaining items on the “essential” list) we have made offers which substantially meet the requests made.
As regards the agreement as a whole, my Government were of course fully aware when they decided to enter on negotiations of the limitations on the power of the United States Government to reduce duties, but nevertheless when the time comes to defend the agreement in Parliament and in the country it will not be easy to explain why over the whole field of the agreement the United Kingdom reduced rates of duty are mostly down to 10 or 15 per cent. ad valorem, while the United States rates on many of the more important exports of the United Kingdom remain at 30 or 40 per cent. or more. The explanations will not be made easier by the state of the trade balance between the two countries.
Yours sincerely,
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