611.6131/307: Telegram
The Chargé in the Soviet Union (Wiley) to the Secretary of State
[Received 4:45 p.m.]
140. My 135, April 5, 7 p.m. I was called to the Foreign Office last evening where Rubinin handed me two drafts for an exchange of notes. The first of these would be addressed by the Embassy to the People’s Commissar and would offer unconditionally and without limit in time to the Soviet Union tariff concessions specified in the trade agreement between the United States and Belgium21 and in all respects to give Soviet products most-favored-nation treatment.
The second note, a reply to the Embassy, would agree “to take measures for a substantial increase of purchases by the USSR in the [Page 195] United States”. The Department will note that in the Soviet draft there is no reference to a “continuing” increase, a point which I emphasized in my conversation with Litvinov or indication of the amount of increase or that purchases in the United States would be of products of American origin.
In my conversation with Rubinin I expressed doubt that my Government would care to effect an exchange of notes as proposed. The texts in careful translation are as follows:
“Mr. People’s Commissar: I have the honor to inform you that on the basis of the decision of the President of the United States of America the Treasury Department has extended to the products of the soil and industry of the Union of Soviet Socialist Republics imported into the territory of the United States of America the customs privileges granted to Belgium on the basis of the trade agreement between the United States of America and Belgium signed on February 27th, 1935.
By authority of my Government I have the honor to confirm that also in the future the products of the soil and industry of the Union of Soviet Socialist Republics imported into the territory of the United States of America will in all respects enjoy the regime of the most-favored-nation; in particular the levying of customs duties on these goods will be effected at the most privileged rates established by the Government of the United States on the basis of the provisions of the customs legislation or in pursuance of treaties and agreements with third countries.
In view of the fact that the policy of tariff concessions pursued at the present time by the Government of the United States has for its purpose the extension of the trade of that state the Government of the United States expresses the hope that the Government of the Union of Soviet Socialist Republics taking into consideration the above stated consent of the United States to extend to the products of the soil and industry of the USSR the regime of the most-favored-nation will take measures for a substantial increase of purchases by the USSR in the United States.
I would be very grateful to you, Mr. People’s Commissar, if you inform me within the shortest possible period of time regarding the attitude of the Government of the Union of Soviet Socialist Republics towards the question indicated above.
Accept, et cetera.”
“Mr. Chargé d’Affaires: Confirming the receipt of your note of this date I have the honor in the name of my Government to take cognizance of your communication to the effect that on the basis of the decision of the President of the United States of America the Treasury Department has extended to the products of the soil and industry of the USSR imported into the territory of the United States of America the customs privileges granted to Belgium on the basis of the trade agreement between the United States and Belgium signed on February 27, 1935, and that also in the future the products of the soil and industry of the USSR imported into the territory of the United States will enjoy in all respects the regime of the most-favored [Page 196] nation in particular that the levying of customs duties on these goods will be effected at the most privileged rates established by the Government of the United States on the basis of the provisions of the customs legislation or in pursuance of treaties and agreements with third countries.
“In reply to your inquiry I have the honor to state that in connection with the above-mentioned decision of the Government of the United States, the People’s Commissariat for Foreign Trade expresses its consent to take measures for a substantial increase of Soviet purchases in the United States.
Accept, et cetera.”
- For text of the agreement signed February 27, 1935, see Department of State Executive Agreement Series No. 75, or 49 Stat. 3680.↩