659.116/28
The Minister in Denmark (Coleman) to the
Secretary of State
No. 130
Copenhagen, August 18, 1932.
[Received
August 27.]
Sir: I have the honor to inform the
Department that I have again protested in the Foreign Office against
the refusal of the Exchange Control Board to grant permits for the
importation of American goods, citing a clear case of
discrimination.
Following my conversation with the Foreign Minister an Aide-Mémoire was left with him, a copy of
which is inclosed.
The Minister stated that the Government intended to cut down
importations from all countries in proportion as the purchases from
Denmark were reduced. He would not discuss cases of discrimination
cited now and previously but complained of our tariff on butter.
The Department will appreciate my difficulty in persuading him that
the tariff on butter had nothing to do with the subject of our
conversation.
I would like to have asked him what the Government was prepared to do
in case the tariff on butter was lowered.
When American accounts in Denmark are being abandoned or reduced
under governmental pressure exercised, according to our lights, by
discrimination and, hence, the violation of our Treaty with Denmark,
some action, other than protest unheeded, should be taken.
Giving notice to terminate a treaty over a hundred years old is not
recommended. The Foreign Minister has stated publicly that it might
be necessary for Denmark to renounce some of her treaties with other
countries in pursuance of her “new economic policy”. It is for
Denmark to take the initiative.
[Page 163]
As was briefly suggested in my despatch No. 124 of August 15,
1932,6 certain
important international American corporations might join in
persuading the New York City banks to decline to renew short term
loans or refunding Danish obligations in the United States except
with the express stipulation that such funds shall not be used to
finance Denmark’s trade with other countries and that such funds
shall be held as a dollar exchange account.
As for the tariff on butter of 14 cents a pound, I am not prepared to
make any proposal or suggestion of bargain however gladly the Danes
would listen to such.
Without further instructions from the Department it will serve no
good purpose to continue protests in cases as they may continue to
arise.
Respectfully yours,
[Enclosure]
The American
Legation to the Danish Ministry
for Foreign Affairs
Aide-Mémoire
On April 8, 1932, the American Minister presented an Aide-Mémoire to the Royal Danish Ministry
of Foreign Affairs, in which were cited two cases of apparent
discrimination against the commerce of the United States with
Denmark. At that time the Minister was assured that no
discrimination was being made against the commerce of any nation
in pursuance of an economic policy of the Royal Danish
Government then in effect.
While the Treaty between Denmark and the United States stipulates
that the rules governing relations between the two countries
shall be “clear and positive” and “frank and equally friendly
with all”, the Minister was not informed on what basis or by
what existing regulations the Exchange Control Board was
exercising legal authority in acting upon the applications of
importers to obtain licenses to import American products.
The Minister was told that the regulations or policy of the Royal
Danish Government were secret and confidential.
The attention of the Royal Danish Ministry of Foreign Affairs is
respectfully invited to the following case:
[Page 164]
In February Mr. Rudolph
Schmidt, an importer of American Radio sets
informed the Legation that his firm had applied for import
permits and exchange certificates for
| Kr. |
15,000 |
worth |
of |
radios |
and |
parts |
from |
the United States; |
| Kr. |
10,000 |
“ |
“ |
“ |
“ |
“ |
“ |
England; |
| Kr. |
5,000 |
“ |
“ |
“ |
“ |
“ |
“ |
Germany. |
The Legation is now informed that all requests for permits for
American and German Radio products have been refused, while
import permits for British radios and parts were granted.
This firm has therefore been obliged to abandon its American
connection and in the last few months have imported British
radio sets and products up to about Kr. 50,000.
The American Minister is aware of the public statement of the
Chief of the Exchange Control Board to the effect that the Board
had done very well in diverting trade from such countries who
bought little from Denmark to those who purchased the most. This
naturally raises the query how and by what means the Royal
Danish Government, through its legal agencies, does divert the
trade of its citizens from one country to another.
Recent figures available support the statement made, namely:
Compared with trade during the first six months of 1931,
American imports declined 30 per cent while imports from Great
Britain increased 13 per cent in 1932, and during the month of
June this year American imports declined 59 per cent while
imports from Great Britain increased 22 1/2 per cent as compared
with the same period last year.
If the policy and practice applied to the trade of the firm of
Rudolph Schmidt is
generally applied to importers of American goods, the figures
quoted above are readily accounted for.
The American Legation respectfully inquires whether the Royal
Danish Ministry of Foreign Affairs will be good enough to
inquire into the particular case cited and communicate its
findings to the Minister.
The United States Government is confident that the Danish
Government will, through the Royal Ministry of Foreign Affairs,
promptly invite the attention of the Exchange Control Board to
any practice or policy which savors of discrimination against
its trade and, in every way promote those friendly relations
confirmed by treaty and natural in the intercourse between the
two peoples.
Copenhagen, August 17,
1932.
