659.1112/24
The Minister in Denmark (Coleman) to the
Acting Secretary of
State
No. 43
Copenhagen, April 9, 1932.
[Received April
19.]
Sir: I have the honor to enclose a copy of
an aide-mémoire which I left yesterday with
the Secretary General of the Ministry of Foreign Affairs, Mr.
Bernhoft, recently Danish Minister in
Paris, who took over his present office April 4th.
Many importers of American products have complained to the Commercial
Attaché and to the Consul General of the discrimination made against
them by the Exchange Control Board, all tending to compel them to
give up their American accounts and to place their orders with
British firms.
The Commercial Attaché informs me that this policy generally takes
the form of granting an exchange certificate for the purchase of
British goods at once while the applications for certificates for
the purchase of American goods are held up indefinitely.
The two instances cited in my aide-mémoire
would seem to be evidence of discrimination in violation of our
Treaty with Denmark1 and it was deemed
timely to bring this to the attention of the Ministry of Foreign
Affairs.
The Secretary General said that this might be a matter of balance of
trade but I called his attention to the fact that this Legation had
no text or any knowledge of any regulations under which the Exchange
Control Board was performing its offices.
The powers delegated to this board have not been defined by the
Legislature and the opportunity to discriminate for or against
certain importations is apparently unlimited.
Until now most Danish importers of American goods were unwilling to
be named in any protest against the actions of the Exchange Control
Board, fearing reprisals of one kind or another.
[Page 154]
The two firms quoted in the aide-mémoire came
to Mr. Spofford, the Commercial Attaché, and
asked our aid, stating the facts.
The Department will be promptly informed of later developments in
this rather complicated situation.
In the meanwhile, the instructions of the Department, as a guide,
will be timely and helpful.
Respectfully yours,
[Enclosure]
The American
Legation to the Danish Ministry
for Foreign Affairs
Aide-Mémoire
The attention of the Royal Ministry of Foreign Affairs is
respectfully called to two instances which, if the statements
made are true, would seem to be discrimination against the
products of the United States in violation of the Treaty of
1826, under which the relations between Denmark and the United
States have been happily maintained for over a hundred
years.
Since the Exchange Control Board is an agent of the Royal
Government, it is assumed that the Royal Government takes full
responsibility for its acts or omissions.
It is respectfully suggested that the Royal Ministry of Foreign
Affairs inquire into the statements of Brdr.
Friis-Hansen and of Mr. C. Møller-Nielsen and, if found
to be true, to call the attention of the Exchange Control Board
to its discrimination, requesting the grant of the exchange
certificates so far refused.
Following are the two cases referred to above:
Brdr.
Friis-Hansen, Omøgade 5,
Copenhagen.
During 1931 they imported for Kr. 600,000 worth of
Harley Davidson motor cycles and
Harley Davidson accessories (all of
which were shipped from the United States). On April 5, they
sent in their first application this year to the exchange board
for permission to import Harley Davidson.
They asked for only Kr. 50,000. Already today, April 7, they
received a blank refusal. The Kr. 50,000 covers six motor cycles
which are practically sold.
Their imports of motor cycles from England during 1931 were
practically nil. Since the establishment of the exchange board
they have asked for permission to import for Kr. 200,000 worth
of motor cycles from Great Britain. They were immediately
granted permission for Kr. 160,000. Out of this quota they have
used Kr. 30,000.
From the above you will realize that Kr. 130,000 remain of their
quota from Great Britain. They have asked the Exchange Board
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if it would not be
possible to transfer Kr. 50,000 out of this amount to cover the
above mentioned shipment. This likewise has been met with a
blank refusal.
The Exchange Board’s decision is serious to the Danish firm. They
claim that if the Board succeeds in stopping their
Harley Davidson business, they will be
obliged to discharge the majority of their staff, which amounts
to 25 employees at the present time.
C.
Møller Nielsen, Importer and agent of
foodstuffs and groceries, Bornholmsgade 3,
Copenhagen.
On April 7 this firm informed the American Commercial Attaché
that about one week ago he had sent in an application to the
Exchange Control Board for permit to import Kr. 20,000 worth of
American flour and Kr. 20,000 worth of British flour. All
conditions with respect to time of shipment and other business
factors were identical. Mr. Nielsen claims that on April 5 an envelope was
received from the Control Board enclosing the necessary exchange
certificates to import all of the British flour. He again
approached the Control Board with respect to his application for
the American flour and obtained a written refusal.
Copenhagen,
April 8,
1932.
