File No. 2338/11.

The Secretary of State to Ambassador White.

No. 2.]

Sir: Referring to previous instructions relative to American salted meats in France, the department incloses herewith copy of a letter from Messrs. Armour & Co., of Chicago, Ill., dated the 18th instant.

The department will be pleased to receive from you a report relative to the status of the question of admission of American salted meats into France when accompanied by the certificates of inspection contemplated by our meat-inspection law of June 30, 1906.

I am, etc.,

Elihu Root.
[Inclosure.]

Messrs. Armour & Co. to the Secretary of State.

Sir: We have exchanged various letters with you relative to the conditions of entry into France for American meat food products, and your last letter, dated the 29th ultimo, kindly gave us a copy of the note received by Ambassador McCormick from the French department of agriculture.

We sincerely hope that we shall soon hear from you that the French ministry has decided to accept the certificate of the Department of Agriculture of the United States without further restriction, and to waive the requirement of microscopic inspection.

Our agent at Marseilles, Mr. Marius Toy-Riont, has recently visited us and called to our attention the following facts, which appear to us to be worthy of prompt consideration and necessary action:

The last clause of paragraph 2 of the reciprocal commercial agreement between France and the United States, concluded May 28, 1898, states:

“But it is expressly understood that this latter concession may be withdrawn in the discretion of the President of the United States whenever additional duties beyond those now existing, and which may be deemed by him unjust to the commerce of the United States, shall be imposed by France on products of the United States.”

Our Marseilles agent advises us that on or about July 1, 1903, the French ministry decided to apply to salted meats, such as backs, bellies, and hams, the maximum rate of duty of 50 francs per 100 kilos.

Up to that time these articles had been admitted on the minimum rate of 30 francs per 100 kilos, and although they were not specifically mentioned in the agreement of 1898, it would appear that it was the intention of Mr. Kasson and Mons. Cambon in negotiating this treaty to include salted meats, although they [Page 406] omitted them from the list, and it would appear that the French Government considered this as simply a technical omission until on or about July 1, 1903, when it was called to their attention by the agrarian interests and changed.

We beg to submit that the products of the United States are by this application of the maximum tariff to salted meats seriously handicapped, compared with the products of other European countries, and we understand from Mr. Toy-Riont that this subject has already been one of diplomatic discussion between your department and the French Government, but that the latter appeared to interpose somewhat serious objections to making the change for political reasons, and, as there was no particular pressure from ourselves or other manufacturers on this side, the matter was dropped.

We understand that Consul-General Skinner, at Marseilles, sent to the department on or about November 1, 1906, a very complete report on this subject, which will undoubtedly be of assistance to you in investigating same.

The peculiar position of the French market this year makes this question a very important one to the meat packing interests of the United States. The French supply of hogs is very short, prices are exceedingly high, and were it not for this application of the maximum tariff we would to-day be able to do a business of considerable importance.

Bulletin No. 40 of the Bureau of Statistics, Department of Agriculture, shows that during the year 1899 the United States shipped to France 15,428,937 pounds of salted pork, hams, bacon, etc., valued at $2,161,121. During the year 1900 this fell off to 8,945,869 pounds valued at $1,213,885, and in 1903 the imports were 851,374 pounds valued at $119,251. The effect of the application of the maximum rate of duty can be readily seen in the imports for 1904, which amounted to only 210,045 pounds valued at $27,582.

During the year 1904 France imported from the United Kingdom pork-salted meats to the amount of 4,305,896 pounds valued at $565,429; from Germany 1,937,151 pounds valued at $254,377; and from all countries, including the United States, 8,371,078 pounds valued at $1,099,248.

Short fatbacks, which is the article of salted meat in most demand in France, is to-day worth 116 francs per 100 kilos, c. i. f. Havre or Marseilles. The duties, inspection fees, and landing charges amount to 62 francs, making the cost “duty paid” to the French dealer 178 francs. The French make is offered at a parity of 155 francs, a difference of 23 francs, and this in the slaughtering season of the year.

If we were able to work with the minimum duty of 30 francs, the position of the two markets would to-day enable us to do a very considerable business.

We are advised that Servia has during the past twelve months built up a very considerable business in France on account of the differential tariff in their favor. Servia, as you know, is proportionately the greatest hog raising center of Europe.

Can we not invoke the clause of paragraph 2 of the agreement above cited to insist upon the French Government applying to our salted meats the minimum rate of duty?

Our agent, Mr. Toy-Riont, expects to be in New York for the next week or ten days, and if there is any chance of this matter being brought up for discussion or investigation he would be very pleased to visit Washington and render any assistance possible.

We shall also be pleased to arrange for him to visit the embassy at Paris on his return to France, in order to give them any further detail which may be necessary.

We are, sir, yours respectfully,

Armour & Co.,
W. C. Evans.