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the United States themselves, as it was in ours a hundred years ago, to   
lower their tariffs, possibly even to indulge in free Trade. But that   
doesn't mean that there is the least likelyhood of other countries   
following their example, or indeed that it would be for their benefit or   
for that of the world as a whole that they should do so, You will, I   
daresay, have studied the valuable monograph entitled "The United States   
in the world Economy" published by your Department of Commerce. From that   
it is clear that the great European depression between the two wars was   
not due, as current legend sometimes asserts, to high tariffs, quotas and   
exchange restrictions, even if your 1930 Hawley-Smoot tariff may have   
accentuated it. It was due primarily to the nations, more particularly of   
Europe, getting back onto the gold standard with the help of lavish   
American lending and so having the whole basis of their economic life   
pulled away from under them when Americans, first for the sake of their   
own boom and secondly because of their own slump, withdrew their support.   
The most favoured nation Clause prevented them from giving each other   
mutual preference ans so keeping trade and credit circulating within their   
own borders, and was therefore a main contributory cause of the disaster.   
The memorandum points out that the only possibility for a world of free   
multilateral trading and investment depends on the future internal as well   
as external stability of the American economic system. But who can   
guarantee that he memorandum on the other hand also points out that the   
other countries recovered even quicker than the United States, or Canada   
which was closely tied up with you, as a result of the various measures   
 may have impeded world trade but stimulated domestic produc
 
                                                            
 
 
  I think you will find that all the nations practically after   
this war will want to build up their own economics on the basis or   
stability of employment and maintenance of their domestic standards. For   
that purpose they will have to keep their hands free to impose whatever   
regulations may at any moment be convenient and will be very reluctant to   
commit themselves to any far-reaching agreement tending in the direction   
of freer international trade. In our own case we shall have tremendous   
difficulties, for many years I think, in paying our way in the world,   
i.e., in being able to export enough to cover our immediate requirements   
in the shape of raw materials and such food stuffs as we cannot reasonably  
 produce in this country. But that means that we shall have to give   
vigorous protection to our domestic agriculture and keep out unnecessary   
            luxuries and mamufactured   goods...