The Minister in Denmark (Coleman) to the Secretary of State
[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.
- Not printed.↩