611.8331/41: Telegram

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

38. Your 53, May 15, 4 p.m. The phrase in question does not relate to rates of import duty directly, but only to regulations for the enforcement of police or revenue laws, which sometimes may include additional duties as penalties for violation of or attempt to violate such laws. For example, the phrase would insure that the levying of penalty duty on a particular shipment because traders concerned were guilty of undervaluing the merchandise for ad valorem duty purposes would not be regarded as violation of most-favored-nation clause. Phrase in question is standard provision of similar agreements and treaties concluded by the United States.

Accordingly, you may advise Egyptian authorities in writing that there is no intention to establish, by means of the provision in question, for Egyptian imports into the United States a regime less favorable than that accorded to any other country, and that the provision is not designed to permit either country to apply any regulation for the enforcement of police or revenue laws to the trade of the other which would not under like circumstances and conditions also be applied to the trade of any third country.