660c.116/48: Telegram

The Minister in Poland (Stetson) to the Secretary of State

[Paraphrase]

66. Department’s telegrams No. 30, July 30 and No. 32, August 20. The Legation has received from the Polish Government a verbal offer of an import contingent for American automobiles of 320 metric tons quarterly, beginning January 1, 1928. This amount, the Polish Government states, is 30 to 40 tons more than the present contingent for American cars. Of the total quarterly contingent of 320 metric tons 240 tons will be charged against automobiles of the General Motors and Ford Companies. It is intimated by the Polish Government however, that, if desired, the American allotment might be redistributed so as to give other American automobile manufacturers a larger proportion of the total contingent. It should be remarked that the total American quarterly contingent of 320 metric tons would include American cars entering Poland through Denmark. In this connection it is stated by the Ministry of Commerce that, inasmuch as 50% to 60% of the labor employed on American automobiles assembled in Denmark is American and as Danish labor represents only approximately 30% of the labor employed thereon, the Polish Government does not regard American cars assembled in Denmark as meeting the requirements of Polish law, and that Danish certificates of origin for such cars might therefore properly be withheld. The Legation has no means of verifying the accuracy of the foregoing statement but if it is correct, the refusal of the Polish Government to grant Danish certificates of origin to such cars apparently would be justified. The Legation is under the impression, however, that [Page 619] the Polish Government is not really disposed to refuse Danish certificates of origin to American automobiles assembled in Denmark unless, possibly, this Government should seek to obtain a larger contingent for American cars exported directly to Poland from the United States than that offered by the Polish Government.

The Polish authorities state that French automobiles will be granted a quarterly contingent of 250 metric tons as compared with the 320 metric tons for American automobiles. The French contingent of 250 metric tons is said to be larger than that for any other country.

For the last quarter of 1927 the contingent for General Motors and Ford automobiles is said to be 240 metric tons. The Polish Ministry of Commerce states that for the same period all other American automobiles come under general contingent, which it is said, has been reduced somewhat. The Legation has been assured, however, that if individual requests for import permits for American automobiles other than Fords or those of the General Motors Corporation are presented by the Legation they will receive sympathetic consideration. France has a contingent of 250 tons, which is the largest enjoyed by any country.

With reference to tires and tubes, the American contingent, beginning January 1, 1928, will be 112 tons quarterly. The contingent for French tires and tubes, which is larger than that for any other country, will be exactly the same as the American contingent.

The Polish Government states that it has been unable to present the contingent figures above mentioned in a note to the Legation inasmuch as it desires that these figures be kept secret. The information concerning the French contingents has nevertheless been given to the Legation, it is said, as evidence of good will on the part of the Polish Government.

In order that the necessary steps may be taken preparatory to applying the new contingents on January 1, 1928, the Polish Government has requested an early reply to its verbal offer.

Stetson