1. Wool.

I saw Clayton this morning but they are still not in a position to
talk. Clayton was very apologetic for delay but explained that for
policy [1] they should be in position to state that no decision
had been made to reduce tariff on wool. They were ready with
proposals for President's approval on the day the bill passed [2]
but by this time President had left Washington because of death of
his mother. He returned only Wednesday and has now to deal with
over 200 bills which received Congressional approval in last few
days of Session. These must be signed or vetoed within ten days of
passage. Repeated attempts to see President have failed but they
anticipate decision on Monday. In meantime Clayton must return to
Paris for further discussions relating to Marshall plan but will
be in Geneva again on Wednesday and we have arranged meet
Wednesday night.

I emphasised bad effects of continued delays on political
reactions in Australia but in circumstances there seems no
alternative but to put up with further delays.

2. General Agreement.

I am grateful for your G75 22nd July. We have today despatched
long telegram dealing with the mechanics relating to General
Agreement. I have been giving very close personal attention to
this problem. Unfortunately there has not yet been a discussion of
the agreement by the committee and we do not know views of all
other countries. I have however arranged that these discussions
should commence Monday and after that we will be able send
comments on position taken by other members.

Timetable for tariff negotiations will be examined on Monday. It
seems certain that the conference will accept the inevitable that
the negotiations will not conclude on 15th. Probably 15th
September will be the date with a further fortnight for tidying
up. Even this estimate is not justified by present rate of
negotiations but developments with United States may expedite the
work.

We have refrained from detailed comment on content of the
agreement until we have studied it further and we know attitude of
other countries. I thought you would wish consider separately the
urgent question of the possible programme in Australia and its
effect upon our attitude here to the agreement.

3. United Kingdom - United States discussions.

We have been advised of the progress of discussions between United
Kingdom and United States on European and the United Kingdom
economic difficulties including United Kingdom decision that
unless the preparatory agreement permits discrimination they will
be unable accept it and suggestion the agreement might be
initialled ad referendum and even provisional operation deferred
until economic situation becomes clearer.

I understand you have been informed of the substance of these
discussions. My latest advice is that during the discussions
between Cripps and Clayton in London it was provisionally agreed
(A) That Clayton would urge United States to accept the addition
of a protocol to the general agreement by which the operation of
the non-discriminatory clauses would be deferred until the
Marshall plan had had time to take effect on the European and
United Kingdom economic situation. (B) That the United Kingdom
would sign the general agreement at Geneva and operate the tariff
schedules and general agreement provisionally from 1st January.

We have made clear to United Kingdom and other Commonwealth
countries our difficulties with regard to signature and further
discussions will take place on this and other aspects of general
agreement.

I am booked leave London by Lancastrian 17th August.