711.60p2/22: Telegram

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

21. Your 43, June 2, 4 p.m.

Article 7. In Department’s opinion treaty as drafted does not limit right of Latvia to impose prohibitions or restrictions relating to commerce in articles constituting state monopolies, if there is no discrimination against American nationals, vessels or goods. It is to be observed that the stipulations in regard to commerce other than navigation throughout the Treaty are on a most favored nation basis, and that no additional privileges are accorded to the United States. As Latvian Government does not contemplate any discrimination in respect of monopolies Department does not perceive that Section C would serve any purpose.
For reasons given in Department’s 19 May 16, 3 P.M., Department does not agree to insertion of “or transit” in the exception to Article 15 but to enable Latvia to comply with treaties will accept following addition at end of first sentence “or of which the transit may be forbidden in accordance with the terms or the convention and statute on freedom of transit signed at Barcelona April 20, 1921.”