FOREIGN ECONOMIC AND COMMERCIAL POLICY                 791
 V. UNITED STATES PREPARATIONS FOR THE TARIFF NEGOTIATING
   CONFERENCE CONVENED AT TORQUAY, ENGLAND, SEPTEMBER 28,
   1950. ('THE THIRD ROUND")
 394.31/8-1150
 Memorandum, of Conversation, by Mr. James H. Lewis of the Division
                         of Commercial Policy
 CONFIDENTIAL                        [WASHINGTON,] August 11, 1950.
 Subject- British Proposal for Unilateral Tariff Reduction by the
     United States :at Torquay
 Participants: Mr. Robert Burns, Counselor, British Embassy
                Mr. K. R. C. Pridham, Third Secretary, British
                   Embassy
                Mr. Leddy, ITP
                Mr. Vernon, CP
                Mr. Lewis, BNA
   The British representatives called at our request. Mr. Leddy said
 that in view of the doubts which appeared to) exist about the U.S.
 attitude -toward the suggestion made by Sir Leslie Rowan on July 7
 (See CTC D-1/13) 1 we thought it would be desirable to give a some-
 what fuller explanation of our position. He then gave Mr. Burns a
 copy of the attached informal memorandum.
   After reading the memorandum, Mr. Burns said he thought there
 were two separate issues involved, (1) he immediate question of what
 was to be done at Torquay, iand (2) the question whether the policy
 as stated in Mr. Leddy's memorandum was as sensible as it seemed
 to be in 1945. On the first point, he felt both sides were tending to
 exaggerate the views of the other-the U.K. had not suggested uni-
 lateral tariff reduction tout court, but the U.K. did consider that
 it would be consonant with the position taken in last September's
 tripartite conversations "if a considerable part olf the concessions

   Not printed. At a meeting between United States, British, and Canadian
finan-
cial experts in Washington on July 7, 1950, which this document records,
Sir
Leslie Rowan, the British spokesman, had indicated the strong British hope
that
at the -forthcoming Torquay meeting the United States would grant substantial
and at least in part unmatched tariff reductions as a contribution to the
general
solution of the problem of the balance of payments imbalance between the
sterling
and dollar areas. The July 7 meeting was one of a series in continuance of
tri-
partite consultations between the United States, Britain, and Canada agreed
upon by the three countries in their Joint Communique of September 12, 1949,
terminating their talks at Washington, September 7-12, 1949, in which they
ex-
amined trade and financial relationships between the sterling and dollar
areas
(for text of the Joint Communique, see Departmnenttof State Bulletin, September
26, 1949, pp.7 473 ff.; for documentation on the Washington Tripartite Talks,
see
Foreign Relations, 1949, vol. Iv, pp. 7991ff. Sir Leslie asserted atthis'July
7 meet-
ing that the United Kingdom felt that the forthcoming Torquay tariff negotia-
tions woufld be a m'aj~or test of the ideas 'and :spirit of the Jfoint C
ommunique off
September 12, 1949. The United States reaction and point of view are printed
be-
low. (Doe. CTC D-1/13, July 7, 1950, International Trade Files, Lot 57D284
Box 138, Folder "UK 1950 TN/8100/Preliminary Negotiations")