THE DOLLAR SITUATION:
Page 360
CANADA'S ATTITUDE
Note of a Meeting held at Chequers on
10th August, 1949, at 5.15 p.m.
172
PRESENT:
The Rt. Hon. C.R. Attlee, M. P.,
Prime Minister
The Rt. Hon. Viscount Addison,
Lord Privy Seal
The Hon. Sir Alexander Clutterbuck, United Kingdom High Commissioner in Canada
Sir Norman Brook
THE PRIME MINISTER began by asking whether the Canadians yet realised that, in present conditions of world trade, they could not expect to maintain an economy based on selling their. primary products to the United Kingdom and importing their manufactured goods from the United States. If not, ought we not to force them to face this issue - for example, by proposing that, for part at any rate of their exports to this country, they should accept payment in sterling?
THE HIGH COMMISSIONER said that the Canadians were not yet in a mood to face this issue. They had not given up all · hope of restoring the pre-war triangular pattern of trade between Canada, the United Kingdom and the United States. They hoped that, in consultation with the United States Government,
means might eventually be found of securing an economic collaboration between the three countries comparable to the political collaboration which had already been achieved in the Atlantic Pact; and that through this Canada might find a way of avoiding too drastic a disruption of her traditional economy. These long-term problems, however, they regarded as essentially a second stage in any economic discussions with the United States Government. The first stage was to find means of overcoming the immediate difficulties of the sterling Commonwealth; and, until some temporary solution had been found for the pressing problems of the moment, they would not be anxious to consider the long- term situation. They would be most reluctant to alter the whole pattern of their trade, and would not be willing to attempt this until they were satisfied that no other course was practicable. And they could not be so satisfied until they had seen what Solution of the short-term difficulties could be devised in consultation between the three Governments. The nature of that Solution would inevitably affect their attitude towards the long-
term problem; and for that reason they would be unwilling to face
hat they regarded as essentially the second stage of these iscussions until the results of the first stage were known. Page 360 of 662
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