611.5131/562
Memorandum by the Secretary of State of a Conversation With the French Ambassador (Claudel)
The French Ambassador took up with me the question of the tariff. He said that he had seen in the papers a good deal of criticism about the tariff; that he had not received any direct information from his Government on the subject. Whereupon I explained it to him. I stated that the recent measures taken by France involved serious discriminations against American commerce, which were placing American exporters at a material disadvantage. The United States makes no discrimination against French commerce, but gives it most-favored-nation treatment. The only exception is the case of Cuba, to which the United States has a special relation, and the case of dependencies and possessions (with respect to which each government naturally preserves the right to establish special tariff measures).
I stated that France is the only country now discriminating against the United States, so far as I know; that the United States had made a considerable number of treaties and other agreements providing for full most-favored-nation treatment, and that we hoped to make such a treaty with France. The recent Franco-German Commercial Treaty had not led to any discriminations by Germany, which gave American commerce the benefit of the concessions made to Franco. On the other hand, France discriminates against American commerce in favor of that of Germany, Great Britain and other countries.
The French Ambassador stated that France had no treaty with the United States providing for most-favored-nation treatment. France regulated its commercial relations by means of reciprocity treaties. There had been considerable complaint in France with respect to American tariff treatment of French goods. In particular there had been criticism at the exclusion of French wines by reason [Page 673] of the American prohibition law. I observed that we still get substantial quantities of wines from France for sacramental and medicinal purposes. The Ambassador stated that Germany had given special favors to the French wine industry; that the industry is very important in political influence in France.
The Ambassador indicated that France would desire special favors to her trade as a condition of giving most-favored-nation treatment. I explained to him that arrangements of that kind are not contemplated by American law. The tariff of 1922 (Section 315) authorizes the President to change duties by not more than 50 per cent, when warranted as a result of findings of the Tariff Commission as to the cost of production in foreign countries as compared with that in the United States. Investigations of cost of production, however, are not designed for bargaining and facts, when established, may lead to increases as well as decreases.
I also referred to Section 317 of the Tariff Law and explained the power of the President to declare additional duties with respect to the commerce of countries discriminating against the United States. We have not been obliged to use Section 317 up to this time because we have succeeded in negotiating commercial agreements which have done away or prevented discrimination against American trade. If, however, France continues to discriminate against American trade, I did not see how we could avoid using Section 317 and increasing the rates against French goods. I promised to furnish the Ambassador with a marked copy of the Tariff Law. (Mr. Young will do this).
I explained to the Ambassador that a number of weeks ago we had sent to Paris the draft of a treaty as a basis for discussion. This draft was presented on September twelfth. I stated that it had been my hope that the treaty might be negotiated at Washington; that matter, however, could be adjusted.