660c.116/40: Telegram
The Secretary of State to the Minister in Poland (Stetson)
32. Your despatch July 25. Department’s telegram July 30. In view of unsatisfactory character of foreign office note of July 21 reply should be made, unless you perceive objection, further defining position of this Government in the matter of contingents. You should point out that one of principal grounds for dissatisfaction is secrecy with which contingent system is administered. Modus vivendi guarantees equitable treatment with respect to each article subject to licensing and Department wishes means of knowing whether such treatment is actually being accorded. In this connection, refer to statement of Polish Government in regard to favorable showing of United States in total import trade of Poland, and point out that this is by no means conclusive indication of favorable treatment under contingent system inasmuch as 70 per cent, of total imports is said to consist of articles not subject to licensing.
[Page 615]Request statement of number of import licenses for automobiles granted various exporting countries, and if not already obtained request similar statement for tires.
[Paraphrase.] Following for your guidance. The Department believes that by continued pressure at present time some influence may be exerted toward ending the contingent system. If present occasion is taken to state emphatically the position of our Government, more favorable treatment may be accorded other articles apart from the prospect of securing tangible result on automobile contingents.
In apportioning licenses, regard should be given to normal share from the United States in total imports of each article which is subject to licensing. In consultation with commercial attaché, compute, if possible, such share for tires and automobiles, based on import statistics for period preceding the adoption of the contingent system. Try to obtain assurances that licenses will be allotted to American imports on this basis if you consider such share equitable and if it is not now being received. As occasion arises, follow similar procedure regarding other articles.
Department should be kept fully informed. [End paraphrase.]