660f.116 Tractors/10
The Chargé in Czechoslovakia (Hibbard) to the
Secretary of State
No. 595
Prague
, December 15, 1931.
[Received
January 5, 1932.]
Sir: I have the honor to refer to the
Department’s Instruction No. 61, of March 12, 1931,3 and previous correspondence
concerning the difficulties experienced by the importers of American
tractors in securing import licenses for these machines to enter
Czechoslovakia and to report that this matter has again been brought
to the attention of the Legation by the refusal of the Czechoslovak
authorities without stating their reasons to grant licenses for
several caterpillar tractors which have been purchased here.
There is enclosed herewith a copy of an aide-mémoire which was left with the Minister for Foreign
Affairs by Minister Ratshesky in accordance
with the Department’s telegraphic instruction No. 5 of March 12, 12
noon. The question was then informally discussed with him and later
on with the Undersecretary of Commerce, Dr.
Peroutka. No progress was made and the
matter lapsed as the selling season for tractors had passed.
It is my feeling that informal representations to this government on
matters affecting trade are of little value as there is always a
commission or a department behind which the respective Ministers
hide, shifting or dividing the responsibility for each decision. I
have therefore written a formal note asking that the exclusion of
the tractors already purchased be reconsidered and urging the
advisability of stating the definite number of tractors which will
be admitted over a given period of time in order that the importers
and manufacturers may do business without the present uncertainty
which entails both financial loss and delay. A copy of my note is
transmitted herewith.
Respectfully yours,
[Enclosure 1]
The American
Legation to the Czechoslovak
Ministry for Foreign Affairs
Aide-Mémoire
No. 1496
The American Legation has received complaints from importers,
distributors, and agents of American tractor manufacturers that
the [Page 150] importation of
tractors into Czechoslovakia has been made increasingly
difficult within the last year. Their complaints do not apply to
tariff duties, which, in themselves offer a restrictive measure,
but to the application of an import license system whereby each
shipment is made subject to special permit before it may be
cleared through the customs offices. Prior to 1928 such permits
were usually issued upon request and without delay. Since that
time, however, the policy of the Czechoslovak government appears
to have been to refuse, wholly or in part, nearly all
applications of importers for permission to import American
tractors into this country.
So far as this Legation is aware there is no legal limit on the
total number of tractors which may be imported into
Czechoslovakia from any country or by any individual importer or
in any one shipment. In active practice, however, it appears
that arbitrary decisions have been made by the Czechoslovak
authorities in refusing to comply with requests for permission
to clear shipments. It is apparent that this system works a
great hardship on importers since these measures are more severe
than an import quota due to the uncertainty involved as the
number of tractors which can be imported from any given
shipment.
In view of this situation it will be appreciated if information
can be given as to the treatment which will be accorded imports
of American tractors during 1931 in order that American concerns
may make their plans accordingly. As the Spring season is
rapidly approaching, during which the importation of these
machines is heaviest, such a statement at an early date would be
most helpful.
[Enclosure 2]
The American Chargé (Hibbard) to the
Czechoslovak Minister for Foreign A fairs (Beneš)
No. 1519
Prague
, December 15, 1931.
Excellency: I have the honor to inform
Your Excellency that the Czechoslovak firm “Agra-Unie” which is
the local representative of the Caterpillar Tractor Company of
Peoria, Illinois, United States of America, has been refused
import licenses for a number of caterpillar tractors by the
Ministry of Commerce without any reason being given. In previous
discussions of this matter with members of Your Excellency’s
Government this Legation has pointed out that no definite limit
has been placed by Czechoslovakia on the number of tractors
which may be imported into the country from the United States or
[Page 151] any other country.
As a consequence due to the seemingly arbitrary manner in which
import licenses for these machines are refused the normal
business relations of the importers suffer because of the
uncertainty as to whether the machines which have been
contracted for will be admitted. As the tractors in this
instance are of a special type which are not manufactured
locally and do not compete with local production and as they
have already been contracted for and the refusal of their
admission will not only entail loss to the importer but the
manufacturer as well, I shall be very grateful if Your
Excellency will be kind enough to cause a reconsideration of
this case to be made in the hope that the necessary import
licenses may be granted.
I should like to take this opportunity again to point out to Your
Excellency how helpful it would be for the trade relations not
only of the importer and manufacturer but the local purchasers
if the Czechoslovak Government could find it possible to state
definitely the number of tractors which may be imported annually
from each country.
Accept [etc.]
