611.4131/125

Memorandum by the Chief of the Division of Trade Agreements (Grady)

Mr. Chalkley having just returned from England came in to continue the discussions which were started before he left last July with reference to a possible trade agreement between this country and Great Britain.

At the time we last talked, it was agreed that we would continue our studies of British-American trade with a view to exploring the possibilities of an agreement. We both agreed at that time that there should be no publicity and that it would be advisable that both sides should be convinced of the successful outcome of negotiations before any public announcement of intention to negotiate was made, for any public announcement followed by failure to complete an agreement would be unfortunate in every respect.

I told Mr. Chalkley that our studies have been continuing and that we desire to make a very comprehensive survey before starting even informal discussions of the basis upon which an agreement might be made. He again stressed the desire of his Government that there [Page 4] be no indication to the public of our exploratory studies, and I assured him we were as desirous that there be no publicity as was he. I told him that we had set up a British subcommittee to go into the matter fully and to direct the survey based on work now being done in the Department of Commerce and the Tariff Commission, but that I was sure it would be a matter of some weeks before we would have anything very tangible to present for his informal consideration or the consideration of his Government. It was agreed that we should continue doing what we have been doing in the way of studies and take the matter up with him when the work of the subcommittee has progressed to a point where it seems desirable to talk with him again.

Henry F. Grady