Following for Mr. Howe from the Ambassador, Begins: Acting on your letter of April 17, we called on the State Department and emphasized our great concern at the harm which measures now before Congress threatened generally to our trade and to our trade relations with the United States and specifically to producers of lead and zinc.

2. Pierce, LePan and Allen⁸⁰ saw Harold F. Linder, Assistant Secretary of State for Economic Affairs at the State Department on April 24. They did not have to convince Linder that the present measures would be harmful to us, to others and to the United States itself. Linder was a most vigorous, courageous and effective spokesman for freer trade in his recent appearances before Congressional Committees. Hence we did not have to repeat the general arguments against the Simpson and other measures or the specific arguments against the provisions relating to increasing the lead and zinc duties. We could and did associate ourselves with the arguments which Linder himself had ably advanced.

3. We did, in addition, point out to Linder that the proposals to increase lead and zinc duties were glaringly inconsistent as well with the accepted principles of the industrial defence of our two countries. We recalled that it was only a few months ago that Charles Wilson, Manly Fleischmann,⁸¹ Samuel Anderson,⁸² Joe Fowler⁸³ and many others concerned with the United States defence effort had urged Canada with great insistence to increase the supply of critical materials, including lead and zinc, to the United States; to remove all possible obstacles to the flow of these materials across the border; and to divert to the United States from established long-standing markets. Special meetings of the Joint Industrial Mobilization Committee had been held and special visits to Canada. We recalled to Linder that voicing the fears of our producers who were mindful of the past, we had questioned whether the United States interest was likely to persist beyond the most critical period. We were assured at that time that since the dependence of the United States upon outside sources for raw materials had now been recognized, its attitude had once and for all changed, and we could now reasonably count on the United States as a continuing market.

4. But Linder needed no convincing. He said he would, and we are sure he will, do everything he can to defeat the legislation. He assured us the entire administration is opposed to it in varying degrees.

5. In answer to our question, he thought it would not be helpful for us to make further or more formal protests at this time. He added, though, that the time might come when such protests would be useful. Nonetheless he considered that it would be timely and fitting if the Prime Minister mentioned Canada's concern to the President during his visit.

6. Linder asked us to give the State Department all the information we could on the effect of the increase of duties on Canadian exports and on the Canadian industry. Allen is handling this end of the question directly with Trade and Commerce.

7. While it is a help to have the administration with us, we cannot minimize the strength of the proponents. The father of the scheme is said to be Felix Wormser recently appointed Assistant Secretary of the Interior in charge of mineral resources. He is a former Vice President of the St. Joseph Lead Company and more recently was head of the United States Lead and Zinc Association. These proposals are a culmination of two years of lively lobbying in which Wormser played a major role. Further, the membership of the House Ways and Means Committee includes a majority of Republicans whose voting record is protectionist. And above all, the State Department confirms that the United States lead and zinc producers do seem to have been seriously hurt by falling prices.

8. The Australians, Yugoslavs, Mexicans and the United Kingdom also have expressed their fears in more or less similar representations to the State Department. Ends.