550.S1/769: Telegram
The Chargé in Great Britain ( Atherton ) to the Secretary of State
[Received May 13—9:15 a.m.]
126. From Davis. My 122, May 12, midnight [11 p.m.] The procès-verbal containing the explanations and reservations with regard to the tariff truce will probably not be finally drawn up for [Page 606] a few days as the Italian comments have not been received. This morning I had a long talk with Rueff, the French Financial Attaché here, with a view to inducing them to modify and limit the broad character of their reservations as quoted in my telegram. Rueff told me that the French Government was ready to communicate to the League of Nations a detailed list of the measures and projects which the French Government had in mind under their reserves and stated that these measures and projects included:
- 1.
- A draft law which has been communicated to the German Government and which relates to the raising of tariff duties in connection with the tariff increases determined in Germany on March 15th last.
- 2.
- Taxes of an exclusively fiscal character calculated to aid French colonial production.
- 3.
- Projects of laws which raise customs duties on secondary cereals, oleaginous grains, fats, and certain fruits and conserves.
I expect to discuss this general subject with the French in Paris on Monday and will do my best to get the French reserve as finally incorporated in the procès-verbal reduced to more reasonable proportions.
I have just received the actual text of the German reservations referred to in my telegram of last night which reads as follows:
“The situation of Germany with regard to financial and economic problems is fundamentally different from the situation of other countries represented in this Committee especially for the reason that Germany is suffering more than any other country of the world under the burden of her indebtedness.
It is therefore possible that in the near future situations might arise for Germany in the domain of currency and commercial problems which do not arise in the case of other countries.
Nevertheless, the German Government associates itself with the proposal.
In the case however that the German Government would consider vital interest of the German people to be endangered, it reserves for itself for the above mentioned reasons the right to take at any time the measures which then would appear necessary.”
- [Davis]
- Atherton