711.632/30: Telegram
The Minister in Austria (Washburn) to the Secretary of State
[Received 11:55 a.m.]
56. Department’s telegram 17, September 23, 6 p.m.
- 1.
- Schüller will accept “bases of duties” clause if Finance Ministry, which objects, will recede.
- 2.
- Retroactive application. Agreed as authorized.
- 3.
- Licensing. Passed.
- 4.
- Emergency exceptions limited to “war”.
- 5.
- Frontier traffic. Austrian Government will agree to second alternative if it must, but greatly prefers first, on the ground that kilo metre limitation difficult to observe, especially because of conditions on Czech border. It still [hopes?] first alternative may be accepted.
Reverting to 3, Schüller asserts he sympathizes with “equitable treatment” idea mentioned in paragraph four of American draft but experts have labored in vain to draft acceptable formula. He especially [Page 987] regards words “in view of normal volume of trade in the particular class of goods between the two countries” as equivocal and troublesome. “The particular class of goods” might be new at least to the commerce of the two countries and there would consequently be no “normal volume of trade” and therefore no share of ratios or quotas could be granted. This illustrates his difficulty of applying in practice “equitable treatment” principle.
Schüller made it plain he was unwilling to anticipate precise equitable treaty formula in advance of possible action [at] approaching Geneva Economic Conference but he would accept now if agreeable to American Government my unauthorized tentative suggestion to insert “restrictions” after prohibitions in line eighteen, page five, my despatch number 1468, July 11th, and to insert “conditions” in lieu of “formalities” in line 21, page 6. These changes would enlarge scope of favored nation guarantees as expressed affirmatively and negatively.
[Paraphrase.] The American definition of “equitable treatment” is suggested by Schüller for submission to the Economic Conference meeting October 17. If adopted there, he will accept the same. He apparently expects vigorous opposition from the French. Commercial Attaché Groves has been ordered by the Department of Commerce to attend as an expert on contingents and prohibitions. …[End paraphrase.]
Department’s telegram number 15, September 13, 2 p.m. The first paragraph of favored nation article in instruction number 605 of June 30th acceptable. As to second paragraph, legal opinion awaited as to kind of identification document permissible under Austrian law.