611.5131/517: Telegram
The Ambassador in France ( Herrick ) to the Secretary of State
[Received 1:45 p.m.]
161. My No. 149, April 1, 5 p.m. After considering matter further, I am inclined to think that it might be wise act to initiate commercial negotiations with French Government now. Reasons are as follows:
- 1.
- In negotiations now taking place between France and Germany, latter has pressed for and has obtained de facto most-favored-nation treatment as basis of negotiation. Belgians will probably press for similar treatment. There might be advantage to us in fact that others are bringing pressure to bear for certain standards of treatment at same time that our Government is discussing the subject. On other hand, there is possibility that French will be so occupied with two mentioned above that for the moment they will be unwilling to undertake a third major negotiation.
- 2.
- Treaty negotiations might be more readily effective in obtaining change in certain rates now when the new tariff law is in the making than later when the project has become a law, even though the proposed “minimum rates” make provision for “reduction below the minimum rates” through negotiation.
- 3.
- Serruys’ statement that negotiations should not be begun before the new tariff becomes law may have been motivated solely by desire to have negotiations start at time most favorable for French interests.
Should Department decide that negotiations should be initiated now, the Embassy, in accordance with suggestion made in its No. 149, might induce the French to propose negotiations by giving them to understand that the Government of the United States would receive favorably such a proposal. Should this maneuver fail, then Department could initiate negotiations itself by proposing adoption of treaty draft.
If this course should be followed, redraft of article VII as it appears in treaty with Germany appears necessary, for there seems no likelihood that France will consent to agreement which would give most-favorednation treatment de jure.