561.311F1/182: Telegram

The Ambassador in Great Britain (Bingham) to the Secretary of State

246. The cable for Secretary Wallace from Morgenthau dated June 30 referred to in Embassy’s telegram 244, August 20, 11 a.m., proposed the basis of a formal agreement between the wheat exporting countries. Murphy understands from the Secretary of Agriculture that the United States Government has the power under the Agricultural Adjustment Act to carry out in general the provisions set forth in the proposal of the June 30th telegram (although the context of this will now have to be materially modified in view of changes in crop prospects).

Murphy has asked Embassy’s opinion whether he may safely assume in present negotiations with other wheat exporting countries that United States Government could sign and fulfill such an agreement along the general lines indicated in the telegram of June 30 without ratification by Congress.

Murphy would appreciate Department’s instructions as to the form of any such proposed agreement. In Embassy telegram 244, August 20, 11 a.m., Murphy quotes proposed draft memorandum for submission to wheat importing countries at today’s wheat meeting. I understand the general opinion, which the Embassy also shares, to be that if this draft memorandum were initialed, possibly in a somewhat modified form by the countries represented here as a final act of the present wheat Conference it would have merely the force of strong moral suasion but if flagrantly violated might be used as a basis for intergovernmental representations. Under what authority has Murphy right to initial once text of memorandum is approved by Washington?

Bingham