611.8331/41: Telegram

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

53. In an interview just concluded with Acting Minister of Foreign Affairs he agrees to sign with me provisional commercial agreement embodying complete text of Department’s draft with 90 days’ alternative (including provisions for termination by mutual agreement or by reason of action of either legislature) except for one phrase to which exception is taken by Ministry of Finance.

Phrase in question is “or regulations for the enforcement of police or revenue laws” (see paragraph (e) of your telegram 29, April 21, noon).

Objection is that, as whole accord is built around most-favored-nation clause, the exception of the regulations in question would appear to be unnecessary unless their aim is to establish for Egyptian imports into the United States a regime which is less favorable than that accorded to at least certain other countries.

To overcome this objection Acting Minister suggests that phrase be deleted unless such explanation as you may furnish me prove satisfactory to the Ministry of Finance. In the latter event he suggests that the phrase be made the subject of a separate exchange of notes providing that Egypt will enjoy most-favored-nation treatment in the application of these “regulations”.

Please instruct.