611.5131/551: Telegram

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

[Paraphrase]

331. In the course of conversations with the official of the Foreign Office who is directly in charge of the French-German treaty and the new tariff connected with it during which I urged that the new general tariff rates as they apply to American goods be held in abeyance temporarily at least, I said that the United States was prepared to enter into negotiations for conclusion in very near future of comprehensive commercial treaty. Official replied that this was welcome news and that Foreign Office would be ready to take up matter at any time after October 1. He then intimated that with initiation of negotiations, amelioration of disadvantageous incidence of new tariff upon American goods might be looked to; thereupon I raised question of American goods which were shipped before promulgation of the new tariff decree, as arrival before September 6 is physical impossibility. In reply I was told that as decree contains no provision to safeguard such cases the new duties must go into effect for all goods which arrive on September 6 irrespective of the circumstances. I stated that while I appreciated reasons applying to neighboring European countries which caused France to give shortest notice possible before new tariff becomes effective, a gross inequity would be worked as regards us, and I urged strongly that some way of meeting our situation be found.

[Page 671]

I have just been informed that the customs administration, which is under the Ministry of Finance, thinks that any favorable measures extending exception to us would be illegal, but that the Foreign Office has brought the Ministry of Commerce around to our position and both now insist that the new rates should not apply to American goods now in transit, so that customs administration is willing to waive this view and comply with our request provided that Minister of Finance (Poincaré) sees no objection. My informant from the Foreign Office added that in his opinion the chances are considerably more than even that objection will not be raised.

Gordon