Seeing the Wood for the Trees: The British Foreign Office and the Anglo-American Trade Agreement of 1938

The Anglo-American Trade Agreement of 1938 was signed againsta backdrop of escalating unease in Europe and a faltering policyof appeasement of the dictators. It is widely accepted thatthe Agreement was concluded more for its political than forits commercial value. Yet the negotiations were no simple affair,dragging on for over nine months and coming near to breakdownon several occasions. The complex negotiations are well documented,but the role of the British Foreign Office in determining policytowards the Agreement is less well known. What emerges is apicture of internecine struggle between the Foreign Office andthe Board of Trade over the direction of the negotiations. Asthe talks became bogged down in technical detail, the ForeignOffice made repeated representations to put the political valueof the deal before commercial considerations and adopt a moreconciliatory stance towards the Americans. The pleas of theForeign Office were made all the more difficult thanks to Americaninflexibility and Washington's determination to bargain hard.The talks were eventually resolved in the wake of the Munichagreement when both sides realised the time was right for ashow of Anglo-American solidarity, and not because of the exertionsof the Foreign Office. Yet this examination of Foreign Officeactivity during negotiation of the Agreement is illustrativenot only of how the Agreement was closed, but also of the suffocatingpower of British appeasement policy and the very determinedbelief of the Foreign Office in the centrality of achievingcloser relations with the United States in this dark preludeto war. ^* The author would like to thank the British Academy for awardinga Small Research Grant to complete this article.