Repeat T&C Port-of-Spain from New York, External (Information).

On receipt of your messages TC-2753 and TC-2754 Iarranged further meeting at Board of Trade for late yesterday chaired by Doctor Budd who has replaced Levine and with much the same people present.

2. We told British Canada was willing to agree to termination of plan on July 1 next but with some reluctance in view of strong tendency for free dollar allocations to be spent by British West Indies in US. No repeat no immediate decision could be obtained regarding increase in free dollar allocation which would replace funds expanded under plan. This in spite fact Ihad already revealed verbally last week that Canada would be making a proviso that some thirty percent increase be made. Impression gained that they might possibly agree to some such figure although Lucas of Treasury saw fit to warn that if granted this might mean less progress possible in the next step of liberalization dollar imports of consumer goods next year. We did not repeat not comment on this warning but emphasized that you had indicated an increase in free dollars would be necessary.

3. British agreeable to tripartite press release probably around March. Iemphasized that as an essential part of our agreement it is important to Canada that all goods at present moving to BWI from Canada under plan could continue to move in future and that Canada would expect to be consulted should any new restrictions be contemplated. British are in sympathy but not repeat not too clear what they can do in support. They therefore request that you now forward draft wording of this proviso for their consideration. British enquired if we were requesting assurance that equal quantities of individual commodities could continue to be admitted BWI from Canada. We said we thought no repeat no such rigidities were contemplated and we hope this reflects your thinking accurately.

4. As regards the imminent announcement which will be necessary at year end to explain that plan is to continue, British are anxious that no repeat no intimation be given at that time that plan will only go on for six months as they fear possible abnormally high demand for utilization of plan during those six months. Accordingly they wish year-end announcement to appear routine. If you plan altering that announcement from previous years wording they would like to examine it beforehand. They also requested assurance in general terms that in administration of plan during first six months of next year no repeat no abnormally large funds would be expended. We divulged rough level to which shipments under plan had risen and no repeat no comment was made.

5. Minutes of meeting are being prepared by British and may be available Friday. Iwill cable if they reveal any difference or addition of substance to foregoing.

6. British say they have not repeat not yet consulted USA on this subject, but will have to do so. Their inclination is not repeat not to mention to USA at this stage that we have asked for certain assurances about colonies import polices.

[W.] GIBSON-SMITH