611.47H31/78a: Telegram

The Secretary of State to the Consul General at Wellington (Bucklin)

Please address a note to the New Zealand Government referring in general to past discussions of a possible trade agreement between the United States and New Zealand, and in particular to your note dated March 28 [15], 1935, and adding the following:

“The officials of the Government of the United States are appreciative of the continued interest of the Government of New Zealand in the possibility of negotiating a trade agreement. They recall the pleasant conversations had with Mr. Coates (his title if addressing him) and his (your) associates in July of this year and have not failed to give careful consideration to their (your) proposals. These and earlier exploratory conversations have brought out the reasons why it is unfortunately still not practicable at this time to begin negotiations nor for the United States Government to act unilaterally to effect an increase in purchases of New Zealand products in the United States.

The Government of New Zealand must have also noted with satisfaction that such an increase has indeed been effected during 1935 by natural process, and the Government of the United States is hopeful that this fact, together with the extension to New Zealand of the benefits of agreements concluded by the United States with other countries, will serve to allay the feeling that the trade relations of the two countries are unsatisfactory.

The Government of the United States feels that when the larger picture of the trade of the United States with the British Empire and the rest of the world is viewed, there stands out in bold relief the indisputable fact that the large purchases by the United States of products from other British and foreign political units make available in London and other centers credits which are used in part for the purchase of New Zealand products. In other words, the purchasing power of the United States contributes largely to the prosperity of [Page 82] New Zealand, even though its direct purchases therefrom may appear to be below what is desired.

You may be assured, however, that the Government of the United States is sincerely interested in the development of increased direct trade with New Zealand and that it will overlook no favorable opportunity to bring this about.”

Hull