611.5131/552: Telegram

The Acting Secretary of State to the Chargé in France ( Gordon )

260. Your 330, September 2, 6 p.m. It would appear from the information at the Department’s disposal that the new Franco-German commercial agreement61 provides for certain German imports into France customs duties which are substantially lower than those imposed upon corresponding American products. You should consult with the Acting Commercial Attaché to determine whether substantial discrimination against American goods exists and should you find that it does you should make observations to the French Government in the following sense:

Inasmuch as this Government is, in fact, according to French products most-favored-nation treatment, this discrimination against certain American goods in favor of German goods is creating a definitely unfavorable impression in American business circles and in the press. The Department realizes that in the absence of a commercial treaty with France this Government is not in a position to ask most-favored-nation treatment for American goods in France as a matter of right. However, it has expressed its willingness to proceed without delay for negotiations for a commercial treaty and it has no reason to believe that the French Government is disinclined [Page 670] to such negotiations. It therefore hopes that the French Government as a measure of reciprocity will now give assurance that it will impose upon American goods in France no higher duties than those imposed upon German goods as a result of the recent Franco-German agreement, until negotiations for a commercial treaty are consummated, thus avoiding all possible prejudice to these negotiations which, this Government confidently hopes, can be initiated at an early date.62

Report action taken and results by telegraph, as it is important both for this Government and for American business interests to know as soon as possible just what the attitude of the French Government is going to be.

Castle
  1. i. e., of Aug. 17, 1927; League of Nations Treaty Series, vol. lxxvi, p. 5.
  2. Substance of this paragraph communicated to the French Government in an aide-mémoire, September 7.