711.60p2/21: Telegram

The Secretary of State to the Minister in Latvia (Coleman)

19. Your Despatch No. 4408, March 21, 1927.

The Department is pleased that the Latvian Government has agreed to accept so many of the Articles of the draft.
Department notes your statement that a Foreign Office official informed you that the Latvian Government would accept the proposals contained in the Department’s telegram No. 8, March 7, 6 p.m.
You are authorized to accept the Latvian Government’s proposals in regard to the Preamble, Article 13, the omission from Article 15 of the words “of the United States” and Article 27.
This Government desires you to insist upon provision for national treatment in first paragraph of Article 1 of draft. Point out that Estonia accepted this provision in the same terms contained in draft. The paragraph in the draft does, however, differ in some particulars from the Estonian treaty. You are authorized to propose to Latvia a text of this paragraph exactly like that of the treaty with Estonia.
Change proposed in last part of paragraph 1 of Article 7 is acceptable in respect of exceptions (a), (b) and (d). Department is not inclined to accept (c). There are no State monopolies in the United States. It is believed that if Latvian State monopolies do not discriminate against American nationals, vessels or merchandise as compared with those of other countries no questions of difference would arise if exception (c) is not included. It is further believed that there would rarely be occasions on which recourse would be had to exception (c) if it were included. If Latvia insists on this exception please inform Department in regard to character of monopolies and probable manner in which the proposed exception would operate.
In the opinion of this Government no provisions of the treaty relate to the towing service, fishing and national shipbuilding industries. The proposed additions in Article 11 are therefore deemed unnecessary.
Insertion of “or transit” in Article 15 as proposed would open way for prohibition of transit in every class of merchandise and thus for nullification of provisions of article by national legislation. Department would consider an exception specifically mentioning such articles as ammunition and poison gas.
Paragraph 5 of United States-Estonian protocol refers to Article 18 corresponding to Article 19 of draft. Proposed paragraph 3 of protocol refers to Article 27. You are, however, authorized to accept latter.
The Department is submitting a copy of the Latvian Rules Concerning Measurement of Tonnage to proper authorities of this Government for examination with a view to agreement for mutual recognition of certificates. This matter should be considered entirely apart from the Treaty.