is DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY'S GOVERNMENT)
SECRET
C.P.(49) 172
11TH AUGUST, 1949
CABINET
COPY NO.3
THE DOLLAR SITUATION: CANADA
Note by the Prime Minister
On 29th July the Cabinet "agreed that an approach should be made to the Canadian Government before the Washington talks in September about the basis of Canada's long-term trade relations with the sterling area and that the United Kingdom High Commissioner in Ottawa should be recalled to London to advise on the manner in which the approach should be made" (C.M.(49) 51st Conclusions, Minute 2).
I have now had an opportunity of discussing this question with Sir Alexander Clutterbuck. For reasons which I will explain orally to my colleagues he strongly advises that no approach should be made to the Canadian Government on this long-term problem in advance of the Washington discussions. He considers that any immediate approach should be confined to the current difficulties arising from the administration of the European Recovery Programme by the United States Government.
I recommend that the High Commissioner should be authorised, immediately upon his return to Ottawa, to take up this particular question with the Canadian Government and to hand to them an aide memoire in the terms of the attached draft.
The long-term problem of Canada's future trade
relations with the sterling area should, in my view, be discussed further with the Foreign Secretary and the Chancellor of the Exchequer when we consider with them later in the month the general conduct of their forthcoming negotiations in Washington.
10 Downing Street, S.W•1•;
11th August, 1949.
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