611.8331/17: Telegram

The Minister in Egypt (Gunther) to the Secretary of State

18. Your 9, January 29, 11 a.m. According to draft law answer is in the affirmative. Please see articles 3, 4 and 9.3

[Page 741]

In oral statement made January 17th to the Legation’s Commercial Attaché, Under Secretary of State for Finance said that it was intended to alter this provision in such a manner that double rates could be applied immediately to the goods of countries not according most-favored-nation treatment to goods originating in Egypt.

The Minister of Finance, however, recently told me that, if necessary, time would be extended to two years but that his Government hoped we would be the first to conclude a treaty.

Developments in situation subsequent to those set forth in my despatch 307 were reported in my despatch 313, January 4.4 I would suggest Department await receipt before instructing me.…

  1. Translation of the articles follows:
    • Art. 3. Independently of the duties in Schedule “A”, there is instituted, as a contribution to the State budget, a surtax equal to the amount of these duties which will be collected according to the same conditions as the custom duty itself, but from which will be exempted merchandise originating in countries with which Egypt shall have concluded customs conventions, through application of the provisions of Article 9 of the present law.

      Nevertheless, this surtax will not be collected until one year following the coming into effect of the new Tariff.

    • Art. 4. Exoneration from the surtax provided under the preceding Article, as well as all diminutions of duties established or to be established by reason of the origin of merchandise, will only be granted if this merchandise comes directly from its country of production or by way of countries enjoying in Egypt treatment of the most favored nation.
    • Art. 9. The Government is authorized to negotiate with foreign governments a reciprocal grant of most-favored-nation treatment.
  2. Neither printed.