550.S1/1174
The Acting Secretary of State to the Administrator of the National Recovery Administration (Johnson)
Dear General Johnson: I am informed that in looking over suggestions for a tariff truce which may be offered for discussion by the American delegation to the Monetary and Economic Conference, you raise the question whether delay in action by this country under Section 3 (e) of the Industrial Recovery Act would be caused by the following clause affecting such action contained in these suggestions:
“Before exercising the right conferred in this reservation, Governments are to give preliminary notice to the principal foreign countries interested in the trade in the particular commodities involved and [Page 732] allow representations of viewpoints of foreign Governments with regard to conditions of application of such measures, each Government having the right in case of unsatisfactory result to denounce the agreement toward the products of the country availing itself of this safeguarding provision.”
I am advised by experts of the Tariff Commission who have been cooperating with this Department in this matter that this consultation with foreign Governments would not result in delay in action under Section 3 (e) in that such consultation would take no more time than would be required in any case to conduct the domestic procedure required by law. The foreign Governments could be notified of the possibility of an increased duty or of the application of terms and conditions on importation immediately when the investigation by the Tariff Commission is ordered by the President, and under normal conditions at least one month would elapse after that date before any final action could be taken.
Sincerely yours,