660p.11212/12
The Minister in Latvia ( Coleman ) to the Secretary of State
[Received July 30.]
Sir: I have the honor to refer to my telegram No. 62 of July 7, 12 noon, 1928, to the Department’s telegrams, No. 31, of May 21, 1928, and No. 36, of June 9 [8], 2 p.m. 1928,57 and to previous correspondence between the Department and this Legation regarding the new Latvian customs regulations, a translation of which was submitted to the Department by the American Consulate at Riga in its Report No. 90, of April 16, 1928.58 These regulations require certificates of origin in connection with imports into Latvia of merchandise from countries the products of which are entitled to most favored nation customs treatment.
Consequent to a number of informal conversations between members of my staff and representatives of the Latvian Foreign Office, a Memorandum discussing the effect of the regulations upon the sale of American products to Latvian merchants was handed to the Foreign Office on June 15, 1928. On the same day a representative of the Legation discussed the Memorandum informally with Mr. Olins, Chief of the Division of Western Affairs of the Foreign Office, and at Mr. Olins’ suggestions with Mr. Dundurs, Director of Customs.
It will be observed that this Memorandum, a copy of which is attached hereto,58 contained four suggestions regarding the application and interpretation of the customs regulations, the adoption of which would be beneficial to American-Latvian trade. These suggestions were as follows:
- 1.
- That in cases of trans-shipment to Latvia from European free ports or bonded warehouses of merchandise originating in the United States, the Latvian authorities will not demand as they have done hitherto, a certificate of origin issued in the United States in addition to a certificate issued by the officials in charge of the free port of the Chamber of Commerce of the city in which the free port or bonded warehouse is located stating that the goods originated in the United States.
- 2.
- That the Latvian authorities will find it possible to admit into Latvia at minimum tariff rates without certificates of origin merchandise which unmistakeably indicates by trade marks, addresses of manufacturers, and place of production, that they originate in the United States.
- 3.
- That the Latvian authorities accept, in lieu of certificates of origin, certificates issued by the Department of Agriculture of the United States testifying to the purity of food products such as lard, fatbacks, etc.
- 4.
- That the Latvian authorities accept, in lieu of certificates of origin, United States grain inspection certificates issued under the auspices of responsible American Grain Exchanges and signed by United States grain inspectors, and that they also accept, in lieu of certificates of origin, Canadian grain inspection certificates issued under the authority of the Canadian Government and stating on their faces that the grain which they cover is of United States origin.
With respect to suggestion No. 1, Mr. Dundurs, the Director of Customs, stated that his office had decided to reverse its original decision to demand two certificates and that he would in the future be satisfied with a certificate issued by the free port or bonded warehouse authorities. In case these authorities would not be able to state formally the origin of the merchandise under consideration, he would be satisfied with a statement from the Chamber of Commerce of the city in which the free port or bonded warehouse is located to the effect that after examining the goods, their nature, the papers which accompanied them, and the circumstances surrounding their arrival and storage it can certify that they are of United States origin. Since this arrangement is simpler than any arrangement involving the services of an American Consular officer, it was approved by the Legation and is now in effect.
With respect to suggestion No. 2, Mr. Dundurs stated that there were differences of opinion among his own officials and among the various departments and bureaus of the government regarding the advisability of accepting markings upon goods as indicative of their origin. He stated that markings in some instances are not dependable and cited the case of the factory in Libau which, under contract with a Swedish firm, stamps on its products “Made in Sweden”. He said that despite cases of fraud, his own office would prefer to give credence to markings upon goods. He suggested that the Legation discuss the matter further with Mr. Munter of the Latvian Foreign Office, who has been for some time in south-eastern Europe negotiating commercial treaties. He added confidentially that, in his opinion, some arrangement would be made in the next five or six months whereby goods bearing markings indicative of American origin would be admitted into Latvia as American merchandise, even though unaccompanied by certificates of origin.
[Page 234]With respect to suggestions No. 3 and 4, Mr. Dundurs after some hesitation stated that in so far as his office was concerned there would be no objection to the acceptance, in lieu [of] certificates of origin, of certificates issued by the United States Department of Agriculture testifying to the purity of certain food products such as lard, fat-backs, etc., to the acceptance of United States grain inspection certificates, or to the acceptance of Canadian grain inspection certificates which state that the grain which they cover is of United States origin. He said that he must consult with other Departments of the Government, however, before he could make a definite promise. As a temporary measure it was agreed that he would in the meantime accept Department of Agriculture purity and grain certificates provided they were accompanied by a statement from the American Consul at Riga to the effect that in his opinion they were genuine.
The form of statement agreed upon, copy of which is enclosed,60 was submitted to the American Consul, who saw no objection to issuing it.
Upon the further suggestion of Mr. Olins, Chief of the Division of Western Affairs of the Latvian Foreign Office, the Legation under date of June 19, 1928, submitted a Note to the Minister for Foreign Affairs, copy of which is enclosed,60 in which were formally incorporated the last three suggestions contained in its Memorandum referred to above. Two of these suggestions were adopted by the Latvian Government and put into effect by means of Order No. 202, which appeared in the Valdibas Vestnesis, No. 143, of June 30, 1928. A translation of this Order is enclosed.60 It provides for the acceptance, in lieu of certificates of origin, of United States Department of Agriculture certificates covering shipments of lard and fat-backs, of United States grain certificates covering shipments of grain from the United States, and of Canadian grain certificates covering grain of United States origin shipped from Canada.
The Legation anticipates further conversations with the Foreign Office in the near future with respect to the question of the admission under minimum tariff, without certificates of origin, of merchandise the American origin of which is indicated by markings.
I have [etc.]