Your telegram No. 240 repeated Wellington No. 206. [2] Conference
on employment.

Careful consideration has been given to your suggestion that a
joint approach should now be made to the United States Government
with a view to following up the resolution of the I.L.O.

Conference at Philadelphia by the early holding, either of an
International Employment Conference in association with the
governing body of I.L.O., or of a purely Governmental Conference
with substantially the same objectives.

2. We fully share the view that the domestic employment aspect
should be kept prominently in the forefront in the minds both of
the Governments and the general public in connection with post-war
economic plans. It is clear, however, that the matter demands a
careful approach if we are to carry the other Governments with us,
and if we favour a different procedure from that suggested in your
telegram, it is with this consideration in mind and not because we
attach less importance to the objective than you do.

3. The more we reflect on possibilities the stronger becomes our
conviction that the subject properly belongs to the general field
of Article VII of the Mutual Aid Agreement, and would best be
dealt with in that context. In the report of the talks between
British Commonwealth officials earlier in the year, when the
proposals of your representatives on this subject aroused keen
interest, the recommendation was made that an international
Employment Agreement should be regarded as an 'Essential and
central part of the arrangements for implementing Article VII of
the Mutual Aid Agreement and the Atlantic Charter'. [3] We feel
sure that we should be well advised to adhere to this method of
approach.

4. There are special difficulties attaching to either of the
alternatives mentioned in your telegram. As regards the
possibility of following up the I.L.O. resolution with a view to
the convening of a Conference in association with the governing
body of the I.L.O., two main considerations present themselves.

(1) The unlikelihood that it would be practicable to hold such a
Conference, having regard to the terms of the Philadelphia
resolution, without representation of the employers and workers
groups of the I.L.O.

(2) The position of Russia since it is by no means clear that
Russia would be willing to attend a Conference such as that
proposed in the I.L.O. resolution. On the other hand it may be
doubted whether it would be practicable for the Governments in
face of the terms of the I.L.O. resolution to proceed with holding
of a special Employment Conference limited to Governmental
representatives alone. Added to these considerations is the fact
that all available evidence in our possession indicates that
approach to the United States Government at the present time would
lead to no useful result since, if we have judged the attitude of
the United States Administration correctly, it is clear that they
would be most unlikely to wish to pursue this subject until the
Presidential election is over.

5. In these circumstances we are satisfied that progress is more
likely to be made if instead of aiming at the holding of a special
Conference the subject is approached as part of the arrangements
for implementing Article VII and we feel sure that the Governments
are more likely to respond if the proposal for International
Agreement is considered along with other proposals for
International arrangements within the framework of Article VII as
they take shape. We suggest accordingly that it would be wise to
defer approach to the Americans for the time being but that
special point should be made of raising the matter with them as
soon as opportunity arises for discussions under Article VII to be
resumed. Future procedure could then be considered in the light of
their reactions.