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Historical documents

78 Evatt to Melville

Cablegram 52 [1] CANBERRA, 15 March 1944


1. I was surprised and alarmed at your 40, paragraph 4. [2] While
Article VII might possibly involve some reduction in preferences
your admission that it might involve major adjustments to
Australian industries seems quite contrary to employment approach
set out in basic instructions. [3] As I informed you [4] as a
result of our efforts Canadian Mutual Aid Agreement [5] omits all
references to tariffs and trade barriers. I think you should not
commit us even on official level.

2. Report contained in your 40 makes it clear that while United
Kingdom have accepted the employment agreement [6] they do not yet
fully appreciate significance of employment approach in relation
to commercial policy. Although discussions on employment and
monetary proposals might seem satisfactory, it would be a bad
mistake to appear satisfied. United Kingdom officials still have
to be persuaded to put a strong case on employment and monetary
proposals to United States officials and commercial policy is
still to be discussed.

3. Please advise when further United Kingdom - United States
discussions will take place. Australia should have a direct
representation not only because of our particular interests but
also because we are authors of one of the main proposals.

4. At present, this represents my personal view only, but under no
unemployment quotas.

circumstances do anything definitive until I can call Cabinet
subcommittee on Economic Collaboration . [7] I am confident they
will share my anxieties.

5. Perhaps you will send me a personal cable through this same

1 Sent through the External Affairs Officer in London.

2 Dispatched 11 March. On file AA:A989, 44/735/55/3/5. Paragraph 4
read: 'We said that we realised that the terms of the Mutual Aid
Agreement involved reductions in preferential margins and that
these reductions would not be effected without major adjustments
to Australian industries. Before we could commit ourselves however
we needed a much clearer idea of the effect which the various
proposed reductions would have on our industries and trade. For
instance Australia was greatly interested in British prosperity
and would wish to know what prospects there were of the United
Kingdom obtaining compensating markets in return for those lost.

Further we would need to know what commodity agreements there
would be and how they would develop, for example Australia could
not surrender the meat preferences in the United Kingdom without
adequate safe-guarding arrangements.'
3 See Evatt's letter to Melville of 27 January (on file AA:A989,
44/735/55/3/1) and Document 28, containing the five basic
principles Evatt included in his letter to Melville.

4 Cablegram 42, dispatched 2 March. On file AA:A989,

5 Document 68.

6 The Australian delegation had circulated a document, ASD(44)10,
consisting of a memorandum entitled 'An International Employment
Agreement'; appendix A, 'A draft International Employment
Agreement', and appendix B, 'Aspects requiring further
consideration' (on file AA:CP43/1, 43/1324, i). Appendix A,
amended at meeting on 6 and 13 March, formed the basis of 'A Draft
International Employment Agreement' published as Document 87. The
major amendment to the Australian draft was the deletion of
section (vi) on agreed
7 See Document 21, note 15.

[AA:A989, 44/735/55/3/5]
Last Updated: 11 September 2013
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