711.632/57

The Assistant Secretary of State (Castle) to the Minister in Austria (Washburn)

Dear Washburn: I duly received your personal letter of July 23, 1929, referring to the fact that the Department has not sent you its promised instructions in regard to this Government’s ratification of the treaty of friendship, commerce and consular rights between the United States and Austria.

You are, of course, aware that the question of national treatment of shipping is one about which, since the passage of the Merchant Marine Act, 1920,6 there has been a fundamental difference of opinion within the Government. The Executive has stood firmly for maintaining the traditional policy of the United States, but there has always been enough sentiment in Congress for preferential treatment of American vessels to persuade the Senate that, at least, the way should be left open for a change of policy so far as the new treaties are concerned.

That was the reason for the original reservation to the German treaty. At the time that the treaty with Austria was signed, it was believed in the Department that approval by the Senate could be obtained without the reservation. The reservation was made, however, notwithstanding that Secretary Kellogg went before the Committee [Page 851] on Foreign Relations and argued to have the treaty approved without it.

Difficulties in connection with the treatment of American vessels in other countries have recently confirmed the Executive in the opinion that the policy of reciprocal national treatment should be maintained. Shortly after the resolution of the Senate on the treaty with Austria, on February 27, 1929, the President sent a similar treaty with Norway7 to the Senate and it has been the hope of the Department that approval by the Senate without the reservation could be obtained in this case. The President has never ratified the treaty with Austria and it has been tentatively planned in the Department that, should the treaty with Norway be approved without reservation, the President might be asked to resubmit the treaty with Austria with a view to having the reservation eliminated.

Meanwhile, much time has elapsed without any action having been taken on the Norwegian Treaty and without a decision having been made in the matter of resubmitting the Austrian treaty. Of course, it is not necessary, though it might be good strategy, to put off a decision in the Austrian case until after the Norwegian case has been passed upon by the Senate. The situation in Congress is such as to make very difficult any undertaking to obtain action by the Senate with reference to a treaty. It is not improbable that all treaty matters involving any difference of opinion will be put off until the regular session.

I shall be glad to keep you informed of developments and shall hope that an opportunity will soon arise to send you official instructions in the matter.

I trust that you will keep us informed, either officially or unofficially, of developments there. The drift toward a departure from the policy of most-favored-nation treatment in Central Europe seems to me to constitute a distinct threat to American commerce.

With kindest regards [etc.]

William R. Castle, Jr.
  1. 41 Stat. 988.
  2. Signed June 5, 1928, Foreign Relations, 1928, vol. iii, p. 640.