Office of the Historian

800.602/8–1244

Memorandum by the President’s Special Counsel (Rosenman) to President Roosevelt

Washington, August 17, 1944.

I think that it would be advisable for you, some time in early September, to make a statement or take some action on the subject of international cartels.

At your suggestion, I have discussed the matter at length with State Department people and the present situation is briefly this:

As you know, the British are not much interested in anti-cartel discussions because:

(1)
Several strong factions in their government believe that international cartels are good and should be encouraged;
(2)
They incorrectly believe that the American people (outside of a small group) are not interested in the subject; and
(3)
They believe that continued cartelization will give them a better position in the post-war world not only politically, but because of their foreign exchange situation.

Last fall, however, the British did reluctantly discuss the problems with the State Department in very general terms.

The other European countries are probably sympathetic with the British point of view. However, the Latin-American countries are sympathetic with our point of view on cartels as is, probably, Russia.

Largely as a result of the insistence of Secretary Hull, the British have agreed to continue to carry on cartel discussions, and the discussions are now set for the coming fall, without any definite date.

Probably the British would prefer to postpone them entirely until after the war, but I think this is one field where there will be an uphill fight even to get any international action, and, therefore, I think it should be pushed now while the cohesive force of the war is in effect.

Besides, I think this is the time politically again to take a public position in the matter which would be consistent with your anti-monopoly policy.

There is a very good Inter-departmental Committee in the State Department on the subject of cartels, and they have prepared an excellent memorandum as a basis for these discussions with the British.

I assume that you would want to discuss this with Secretary Hull. The statement could take the form of a letter from you to him on this whole subject.83a If you think well of it I can, with the help of this State Department Committee, prepare a draft of such communication for your approval.

S[amuel] I. R[osenman]
  1. Secretary Hull in a memorandum of September 4, 1944, informed President Roosevelt that he saw merit in this suggestion but that he thought the letter “should be drafted with a view towards setting forth the objectives of this Government, but in such a manner so as to retain flexibility with respect to the method of achieving that end.” Mr. Hull then suggested the language that was actually embodied in the President’s letter of September 6 (infra), the only change being in the third sentence from the end, which in Mr. Hull’s draft began “All cartel practices” instead of “Cartel practices”. (800.602/8–1244)↩