660c.116/51: Telegram

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

47. Your 66, September 27, 5 p.m.

(1) Please inform Polish Government that quarterly import contingent of 320 metric tons for American automobiles during 1928 would be acceptable to this Government, provided this amount does not include automobiles manufactured from American parts in Denmark or other foreign countries. You may point out that if latter [Page 620] were included effect would be to curtail rather than to increase the authorized importations of American cars.

Department is advised that paragraph 45 of Danish Customs Regulations provides that “As manufactured in Denmark, shall be considered not only such goods as are entirely of Danish origin, but also those imported which have undergone a substantial manipulation in Denmark.” It is said that statement to same effect appears on Danish export declaration. If necessary you may bring foregoing to attention of Polish authorities and point out that so far as Danish Government is concerned automobiles assembled in Denmark, of which American materials might constitute over fifty per cent of total cost, apparently would be recognized as entitled to certificates of origin as Danish products. It may be well, however, before mentioning this point to Polish authorities to consult with Danish Minister.

(2) You may state that quarterly contingent of 112 metric tons for American tires and tubes during 1928 would be acceptable to this Government.

(3) With reference to allotment of definite portions of American contingents to certain American manufacturers, please state that this Government would prefer to leave such allotment for negotiation between individual companies and Polish authorities. Since contingency might arise, however, in which an American company would not be in position fully to utilize its allotment, you should request that any allotment determined upon by Polish authorities will not be so rigidly maintained as to deprive other American producers of opportunity of utilizing any unused portion of quotas assigned any particular company.

(4) Department understands that, beginning January 1, 1928, American automobile contingent of 320 metric tons quarterly would be larger than for any country and that American quarterly contingent for tires and tubes of 112 metric tons would not be exceeded by contingent of any other country and equalled only by that of France.

(5) In order that this Government may feel assured that American share in Poland’s imports will reflect relative importance of United States in manufacture of articles in question you should request that in event of any subsequent increase in contingents of other countries, corresponding increase will be made in American contingents.

6. You should request that some means be provided by Polish authorities whereby you may readily ascertain at any given time for any article subject to licensing total quantity of importations from United States effected on a given contingent and total number of unused licenses outstanding.

Kellogg