660c.116/38: Telegram
The Secretary of State to the Minister in Poland (Stetson)
30. (1) Department of Commerce reports that Polish distributor of Goodyear tires states that Michelin Tire Company, a French concern, has received permits for importation during period July-September 75,000 kilograms of tires leaving available only 24,000 to be supplied by all other tire exporters. Commercial Attaché can furnish particulars. Modus vivendi of 1925 stipulates that “in the matter of licensing or prohibitions of imports or exports, Poland and the United States respectively, so far as they at any time maintain such a system, will accord to the commerce of the other treatment as favorable, with respect to commodities, valuations and quantities, as may be accorded to the commerce of any other country”, and “Every concession with respect to any … regulation affecting commerce now accorded or that may hereafter be accorded by the United States or by Poland, by law, proclamation, decree or commercial treaty or agreement, to any foreign country will become immediately applicable without request and without compensation to the commerce of Poland and of the United States and its territories and possessions, respectively.”
Under these two provisions permits should be granted for importation of American automobile tires into Poland in at least as large a quantity as of French tires. Please take up the matter with Polish Government and protest in such form as you consider most effective against this discrimination against American trade in contravention of the terms of the modus vivendi. Please state that you have been instructed to request a statement of the basis on which [Page 614] the system of contingents is applied. Also state broadly that the Government of the United States is confident that on examining the facts of the situation the Polish Government will at once take suitable action to insure that the rights to which imports from the United States are entitled under the modus vivendi are in fact fully accorded.
You may also state orally that according to information furnished by the Department of Commerce 40 to 50 percent, of the tires imported into Poland during the first 3 months of 1927 were of American origin; and that according to the best available information the total tire exports of the United States during that period were at least equal to those of any other country. During the second quarter, though comparative figures are not available, tire exports from the United States to Poland were double those in the first quarter. Consult Commercial Attaché regarding figures. [Paraphrase.] Pending receipt of statement from Polish Government as to basis upon which contingent system is applied, it may be advisable for you to avoid putting statistical statements in writing. [End paraphrase.]
(2) Department approves your action reported despatch 1125, June 27. If you deem it advisable you may refer in your communication to that and any other similar cases.
You are authorized to take similar action in like cases in the future. Please keep the Department closely advised, and forward promptly copies of any communications to the Polish Government pursuant to these instructions.