611.5131/514: Telegram

The Secretary of State to the Ambassador in France (Herrick)

[Paraphrase]

92. Your Nos. 128, March 22, and 130, March 24. It appears that French Government has indicated desire for commercial negotiations between it and the Government of the United States in a manner that warrants this Government in proposing as soon as possible draft of a treaty. The Department is commencing the preparation of a draft treaty similar to those which have recently been made with Germany, Hungary, and Estonia,25 and to those which are under negotiation with certain other countries. Please telegraph Department as soon as possible whether you think next step should be to propose such a treaty draft without further conversations first; also telegraph any suggestions you may wish to make regarding provisions which should be included in treaty of this sort in addition to provisions of abovementioned treaties.

[Page 633]

Section 315 of the present tariff act is designed to provide the means for adjusting rates according to the ascertained costs of production rather than as a procedure for bargaining. In advance it could not be stated what results would follow the investigation of the cost of production of goods in which France might be interested; it is conceivable that the effect might be to increase instead of to decrease rates.

While further consideration of basis of negotiations is under way, Department doubts the advisability of further informal discussions with any French officials.

Kellogg
  1. Treaty between the United States and Germany, signed Dec. 8, 1923, Foreign Relations, 1923, vol. ii, p. 29; between the United States and Hungary, signed June 24, 1925, ibid., 1925, vol. ii, p. 341; between the United States and Estonia, signed Dec. 23, 1925, ibid., p. 70.