CAB129-36 — Page 542

Page 542

The specific objective of the United Kingdom Government should be—

(b) To secure (a) with the highest standard of living for ourselves and without threatening the maintenance of full employment here.

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The immediate abjective of

United Kingdom Government spand 943 of 662

(c) To secure that the United States and Canadian Governments take certain pecific steps which, together with the steps taken by the United Kingdom Government, will ensure that the immediate dollar crisis will be overcome.

I.-Action by the United Kingdom (paragraphs 9 and 10)

Detailed discussion on matters of internal policy, such as the size of Govern- hent expenditure should be avoided. If asked, our representatives should eaffirm our intention to take any steps necessary to combat any inflationary ressure that may develop.

II.-Short-Term Measures by the United States and Canada (paragraphs 11-17)

We should press the United States and Canada on all the short-term measures n C.P. (49) 165 (a list is at Appendix A and an appreciation of their effect is being drawn up see paragraph 18) and in addition on-

Non-discrimination (paragraphs 15 and 16): Oil (paragraph 17).

IV.-Long-Term Policies (paragraphs 19-31)

(a) We should recognise that it will not be possible to reach conclusions on long-term issues in the time available. Our objective should be to open them up, get the maximum identity of view possible, and then lead on to the proposal for continuous discussion at official level with more frequent Ministerial meetings on the lines of recommendation (V) below (paragraphs 19 and 20).

(b) We should seek to place the long-term policies in the background of the responsibilities of creditor and debtor countries (paragraph 21).

(c) The six main issues are :—

Full Employment (paragraph 23).

Restrictive measures taken by the United States (paragraphs 24 and 25) to support domestic producers and block our means of earning dollars, especially

tariffs,

agricultural support prices, shipping.

United States and Canadian Foreign Investment (paragraph 26). Sterling Balances (paragraph 27).

Commodity Questions (paragraph 28). Dollar Price of Gold (paragraph 29).

V.-Machinery for Continuing Consultation (paragraphs 30 and 31)

We should seek agreement on the need for more frequent tripartite meetings of Ministers, with the corollary of the need for continuous discussion of these matters by an informal group of officials of the three countries, to be established on the basis proposed in paragraph 31.

VI. Position of O.E.E.C. (paragraphs 32 and 33)

We should not seek to minimise the importance of the Marshall Plan or O.E.E.C., though we must make it clear that the Plan of itself cannot solve the problems which face us, We should stress that we will continue to play our full part in O.E.E.C. and seek to secure United States support for the view that these tripartite talks will enable us to play a more effective role in O.E.E.C. We should, on these grounds, resist any proposal for enlarging the tripartite talks by inclusion of O.E.E.C. countries.

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