611.5131/515: Telegram

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

[Paraphrase]

149. Department’s No. 92, March 26, 4 p.m. It can hardly be stated literally that French Government has indicated desire for commercial negotiations. In my No. 128, March 22, 6 p.m., I informed Department of what had been said to me informally at Foreign Office, and had already pointed out in my No. 125, March 21,26 that an assurance by M. Serruys is not same thing as an undertaking entered into by French Government. It is true nevertheless that informal indications have been made both by officials in Foreign Office and in Ministry of Commerce which show that that Government does desire initiation of commercial negotiations, not now, but in the near future.

My opinion that the present moment is opportune for initiation of commercial negotiations has been modified by Serruys’ statement reported in my No. 130, March 24, noon, that his feeling is that negotiations should not begin until after new tariff becomes a law. In view of his statement I think this question should be given further consideration. On the other hand, the German position has been and still is to continue negotiations while tariff is under discussion, as these negotiations may be used to influence minimum rates in new tariff. Also, press despatches from Brussels state that negotiations will take place this month looking toward possibility of negotiating commercial agreement between France and Belgium.

It is difficult, moreover, to say whether we should initiate proposal for treaty without further conversations as there might be tactical advantage for us were we to leave it to the French actually to make [Page 634] proposal for negotiations, at which moment we should be ready to present a draft that would be as liberal as any that they would bring forward if given to understand informally that such proposal would meet with favorable reception.

In regard to preliminary suggestions on some things which ought to be included in treaty draft, subject to reservation above mentioned, included in treaties recently negotiated between the United States and several other countries, I propose that certain ambiguities in article II and article VII of consular convention between the United States and France of August 12, 1853,27 be cleared away, but that rights we possess under that convention be maintained and even extended. Also, the treaties referred to above do not seem to include right to own real estate. Another question which should be covered carefully is the taxation of American banks and insurance companies which do business in France.

The matter will continue to receive Embassy’s close study.

Herrick
  1. Not printed.
  2. Concluded Feb. 23, 1853, proclaimed Aug. 12, 1853; William M. Malloy (ed.), Treaties, Conventions, etc., Between the United States of America and Other Powers, 1776–1909 (Washington, Government Printing Office, 1910), vol. i, p. 528.