611.5131/823: Telegram
The Ambassador in France (Edge) to the Secretary of State
[Received 9:20 a.m.]
463. At his request I reviewed with M. Durand, Minister of Commerce, last evening the Franco-American commercial situation with particular reference to the Embassy’s 451, July 28, 1 p.m., memoranda communicated Wednesday to M. Herriot (see my 461, August 4, noon).
Briefly the conversation led to an agreement that the commercial treaty negotiations should begin forthwith, that the French Government [Page 242] would place in my hands early next week an aide-mémoire outlining in detail their attitude, that discussion between qualified experts would commence on August 20th or 21st and that every energy would be bent toward bringing the negotiations to an early and concrete conclusion.
The Minister reviewed our protests and attempted to defend the quota system on the ground that it was nondiscriminatory. He admitted, however, that he personally opposed the system and hoped it could be discontinued after the conclusion of the negotiations for the revision of the Franco-German commercial treaty47 now in progress. Moreover, he expressed regret that the Franco-Belgian treaty which dealt with the system of turnover taxes inaugurated by the Tardieu Government but not favored by the present Government, as a Cabinet discussion today had indicated, had caused so much resentment and agreed to attempt at once to find a solution which might involve a reclassification of copper otherwise than as a semi-finished product.
He was clearly concerned over the hornet’s nest aroused by Belgian treaty and admitted that he had received protests from other countries and even inferences of retaliation. In this connection I intimated that the American tariff act likewise provided for retaliation under certain circumstances although the United States had always adhered to a policy of exhausting every means of having discriminatory measures recalled before resorting to article 338. He seemed familiar with the terms of this provision and perhaps with the measure in mind suggested that pending the outcome to the commercial treaty negotiations a status quo in trade relations should be strictly observed by both parties. I replied that much depended on the speed with which the negotiations were carried forward and that, of course, with respect to specific questions such as the situation arising as a result of the Franco-Belgian treaty I could not commit my Government. He did not pursue the matter farther.
Finally with respect to concessions which the French Government would require in return for a most-favored-nation commercial treaty, M. Durand indicated that his Government would be interested in receiving protection for copyrighted dress designs, leather goods and other articles de luxe as well as assurance that if the United States discarded prohibition, French wines would not be discriminated against on the American market. To this latter observation, however, I made no very serious response.
[Page 243]I accepted as graciously as possible his many general assurances but endeavored to make it clear that there was only one solution and that was to remove existing discriminations.
- The reference apparently is to the commercial agreement of August 17, 1927, League of Nations Treaty Series, vol. cvii, p. 510.↩