FOREIGN RELATIONS, 19 5 0, VOLUME I


394.31/9-1550
  Memorandum ofC onver8ation, by the Director of the Office of
               International Trade Policy (Brown)

CONFIDENTIAL                   [WASHINGTON,] September 15, 1950.
Participants: Mr. Burns-British Embassy
              Mr. Jukes-British Embassy
              Mr. Brown-ITP
  Attached is a copy of a memorandum 1 which Mr. Burns handed
me today which comments on the "recent paper", dated August 10,
which we gave him informally to explain ,the reasons why we were
unable to 'accept the thesis that we should make substantial unilateral
concessions at Torquay. Mr. Burns explained that he was handing us
this memrorandum just to be sure that their failure to comment did
not imply their agreement with our point of view.
  He said he felt that the issue would have to be met at some time
during Torquay, but he felt -that it would be much more satisfactory
after both sides had a chance to consider their mutual offers and
requests.
  Not attached, but see September 15 British Embassy memorandum, infra.


394.31/9-1550
             Informal British Embassy Memmorandum

  The memorandum by the State Department on the forthcoming
Tariff negotiations between the United States and the United King-
dom which was handed -to United Kingdom representatives on the
11th August was inmmediately communicated to London. It has been
very carefully studied by the United Kingdom authorities who have
taken note both of the conclusion to which the memorandum leads
and of the economic and other arguments which are adduced in
support of the conclusion.
  The United Kingdom authorities in raising the matter informally
in Washington had, of course, hoped that a rather different conclu-
sion would have emerged from the discussions. They much regret
that it has not apparently proved possible to find common ground on
this highly important subject and they cannot accept the funda-
mental economic arguments set out in the United States memorandum
which seem to them to ignore some of the basic facts with which the
United Kingdom and other countries, not indeed excepting the United
States, are faced today and have been faced since the beginning of
the war.


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