651.116 Nitrate/10: Telegram

The Ambassador in France ( Edge ) to the Secretary of State

582. Your 452, September 15, 5 p.m. According to information just received by the Acting Commercial Attaché no decision has yet been taken by the Nitrate Commission in regard to question of licenses because the Commission does not appear to have found a method which it considers satisfactory. The most recent plan which has been contemplated would do away with the establishment of quotas. See Acting Commercial Attaché’s telegram No. 82 of September 12 to the Department of Commerce.41 I understand the next meeting to consider the matter will be on October 1st. Consideration has been given and may be given again to a plan whereby the 18 francs per 100 kilos [Page 262] would be used as a subsidy for the French nitrate industry. Although the interested nitrate importers’ opinions have been invited neither Barrett Company’s representative nor the other important importers have made definite objection to the Commission regarding such a plan. In this connection you will be no doubt interested to know that a tax of 30 francs per 100 kilos on rubber and 1 franc per 100 kilos on cotton, I understand are collected by the customs authorities without discrimination against any importing country together with the regular customs duties and the proceeds used by the French Government as subsidies for rubber and cotton growing. These subsidies were established in 1931 and 1927, respectively, and others of a similar nature exist. If a plan were adopted such as that suggested in your telegram it would probably be accomplished as above outlined and since there is a possibility of its being adopted I should appreciate your telegraphing me whether you consider the procedure protestable and if so on what basis in order that I may inform the French authorities before the meeting, on October 1st.

  1. No copy found in Department files.