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Volume #14 - 640.

CHAPTER VII

INTERNATIONAL ECONOMIC RELATIONS

PART 4

CANADIAN-AMERICAN FINANCE AND TRADE

640.

DEA/2300-40

Ambassador in United States
to Director, Economic Relations Division, Department of Finance

SECRET AND PERSONAL

Washington, January 7th, 1948

Dear John [Deutsch]:

Willoughby telephoned to me yesterday afternoon about their suggestion for a new trade arrangement. I told him that I thought it would be better for him to speak to you in Ottawa on the points which he raised and he said that he would do so. He was rather inquisitive about the degree of consideration given to their suggestion in Ottawa. I told him that we were treating it as though it were highly explosive and were handling it with the greatest care so that only three or four people knew about it. He was wondering whether Mr. Abbott might mention the project while he was in Washington. I told him that I had heard from you that Mr. Abbott had been briefly informed but we both agreed it would be unwise for him to mention it except possibly to Tyler Wood or to Willoughby himself. I shall speak to Mr. Abbott on his arrival in this sense.

The other question that was worrying Willoughby he doubtless explained to you - the fact that the arrangement they proposed is not covered by the definition in the I.T.O. Charter of a customs union so that it could not be brought into effect under the Charter without the concurrence of two-thirds of the members of I.T.O. The point was whether we should seek to alter the definition of a customs union at the Havana Conference.

Yours sincerely,
HUME [WRONG]



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