My 369.¹ For Secretary. Final British offers more or less on lines indicated in report of meeting of officials on 28th October. On the whole, concessions made regarded as satisfactory, although some disappointment felt at failure to secure materials to enable full utilisation of our surplus productive capacity. As regards US dollar expenditure, agreement finally reached on figure of twelve million pounds plus our own earnings. We will, of course, save on coal and also this year on wheat of which we are to get 115,000 tons from Australia.

Meetings took place in atmosphere of goodwill. Minister particularly welcomes fact that these contacts have established atmosphere of mutual friendliness. See also my telegram 424.²