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(a) The Secretary of the Canadian Cabinet had recently paid a visit to the United States in the course of which he had held some helpful conversations on the course of the forthcoming discussions in Washington. He had found that the Agenda which the Americans were proposing for those discussions placed excessive emphasis on the action which might be taken by the debtor countries; and he had urged that the Agenda should preserve a better balance between possible action by debtor countries and possible action by creditor countries. He believed that these representations had been effective.
(e) The Secretary of the Canadian Cabinet had also found an opportunity to represent to the United States authorities the importance of their taking some early action to encourage a new up-swing in the United States economy. There was a tendency in Washington to regard as normal anything up to 5% of unemployment; to regard unemployment from 5% to 10% as a cause for anxiety; but to defer any remedial action until the total of unemployment passed above 10%. He had urged that, if the United States Government could introduce remedial measures now with a view to re-introducing an atmosphere of boom conditions within the United States, this would not only bring immediate benefit to world trade but would also create within the United States a climate of public opinion more favourable to any proposals involving further financial assistance to foreign countries.
At the end of the meeting, THE HIGH COMMISSIONER said that, while he would deprecate any early approach to the Canadian Government on the long-term problem, he was in favour of making an immediate approach to them on the short- term problem with a view, particularly. to enlisting their full support of an effort to persuade the United States Government to authorise the resumption of E.C.A. financing for our purchases of Canadian wheat. He had been preparing, in consultation with the Treasury, the draft of an aide memoire on this subject which he might present to the Canadian Government on his return to Ottawa. He would be in a position to submit a final draft of this document to the Prime Minister on the following day.
THE PRIME MINISTER said that he would be glad to have this and would take an opportunity of discussing it with some of his colleagues when he was in London on Friday, 12th August.
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