Foreign Relations of the United States, Diplomatic Papers, 1933, General, Volume I

550.S1 Economic Commission/102

The Consul at Geneva ( Gilbert ) to the Secretary of State

No. 700 Political

Geneva , October 19, 1933.
[Received October 28.]

Sir: In accordance with the instructions transmitted in the Department’s telegram No. 96 of October 5, 11 a.m.,²⁶ final sentence, I have the honor to state that I am now able to inform the Department regarding the outcome of certain informal exchanges of views respecting the continuation of the work of the Monetary and Economic Conference, which exchanges took place in Geneva during the course of the recent Assembly. The substance of these conversations has been communicated to me by responsible League officials on various occasions, and I have accordingly prepared the summarized statement which is set forth below.

By way of explanation, it will be observed that Mr. Colijn, President of the Economic Commission, was authorized by the Executive Committee of the Conference to take the necessary measures for the rapid execution of certain proposals emanating from the Economic Commission (see page 47 of the Report of the Conference). He accordingly convoked in several sessions, on September 29 and September 30, 1933, certain members of the Economic Committee of the League together with several members of delegations to the Assembly who had participated in the London Conference, for the purpose of gaining personal information as to the present situation and as to the possibility of arranging for the continuation of work in the various spheres referred to in the Conference’s resolutions.

Mr. Colijn stated in these meetings that the President of the Conference had taken up this question with him and that he had promised to make a report. Consequently, while reserving the right to make any proposals to Mr. MacDonald, which he deemed desirable, Mr. Colijn wished to take counsel with the Committee members and delegates referred to above before presenting any recommendations to the President of the Conference. Furthermore, Mr. Colijn also recalled the recent decision of the Council of the League (Consulate’s despatch No. 689 Political of October 9, 1933²⁷) under which a close collaboration was envisaged between him, as representative of the Executive Committee of the Conference, and the Economic Committee of the League.

Unless otherwise indicated, the following participated in the exchange of views:

MM.	Germain-Martin	France
	Ritter	Germany
	Ciancarelli	Italy
	Hill	United Kingdom
	Roman	Poland
	Stucki	Switzerland (Chairman of the Economic Committee)
	Ito	Japan (Member of Economic Committee)
	de Nickl	Hungary	“	“	“	“
	Neculcea	Rumania	“	“	“	“
	Schueller	Austria	“	“	“	“

I. General Questions of Commercial Policy

In opening the discussions, Mr. Colijn recalled that in the Council meeting which had approved Mr. Hymans’ report²⁸ on the Monetary and Economic Conference, the President of the Council, Mr. Mowinckel,²⁹ speaking as representative of Norway, had expressed the desire that a thorough study should be made of the proposals submitted by the American Delegation on matters of commercial policy at the end of the Conference and particularly of the part devoted to the regime of the most-favored-nation clause and the exceptions which might be made in favor of certain collective economic agreements.

The outcome of a detailed discussion on these two proposals showed that the majority of those present were of the opinion that the economic and particularly the monetary situation had not sufficiently developed to make it possible to resume with any useful purpose the discussion on questions of commercial policy such as those contained in the American proposal (application and development of the principle of the tariff truce, reduction of customs duties, most-favored-nation clause, and exceptions in favor of certain collective economic treaties).

Nevertheless, with respect to the most-favored-nation clause, those present agreed with Mr. Colijn as to the desirability of carrying on as far as possible, while confining themselves to the objective observation of facts the studies relating to the application of the clause, in order that when the Conference resumed its work, it should have as accurate as possible a knowledge of the situation. Despite the difficulties of such an enquiry and although some doubt might be entertained as to the value of the results, it was agreed that the Economic Committee should endeavor to collect as much information as possible on the manner in which the most-favored-nation clause was applied in practice under the influence of the crisis.

II. Indirect Protectionism

The following subjects were considered under this general heading.

1. Equitable treatment clause

The conversations left the impression that the majority of those present had doubts as to the practical utility of inserting in commercial treaties a formula similar to that recommended by Sub-Commission IIIb of the London Conference figuring on page 30 of the Report.

2. Indirect Protectionism in relation to Customs Formalities and other questions of Customs Technique

In view of all the work done by the Economic Committee in the sphere of customs formalities and technique with the help of qualified experts and of the national administrations, the Secretariat proposes to submit a program of work to the Economic Committee at its next session. It was agreed to await the Economic Committee’s opinion on the best method of putting this program into force.

3. Marks of Origin

At the London Conference a certain unity of views had been manifested as regards some questions of secondary importance, and it was for this reason that the continuation of the work had been provided for.

During the conversation doubts were expressed as to the advisability of resuming this work immediately. Certain members were, however, of the opinion that progress, even on accessory points, should not be neglected, since it might have practical consequences for trade. In these circumstances it was agreed to leave it to the Economic Committee to examine the situation once more, and if necessary to inform Mr. Colijn whether it thought that a meeting would be desirable, and at what date.

4. Veterinary Questions

As regards the conventions prepared by the Economic Committee, the Council has just decided that a Conference will be organized in the course of next year on the basis of the three existing drafts. The Council has nevertheless asked the Economic Committee first of all to give it an opinion on the best method of organizing the work of the Conference with a view to positive results.

5. Shipping Subsidies

Mr. Colijn informed the meeting that Mr. Mowinckel had also, at the time of the adoption of the Council reports on the Monetary and Economic Conference, urged that the work of the London Subcommittee on subsidies to merchant shipping be resumed. The outcome of the discussion on this subject was to the effect that a resumption of the discussions did not appear opportune at the present time, as certain countries of great importance from the point of view of shipping themselves practiced a system of subsidies. The consensus of opinion was that the examination of this problem could only be usefully resumed under two conditions: (a) that it should be taken up in conjunction with that of all other direct and indirect subsidies of whatever nature; (b) that a certain degree of monetary stability was prerequisite.

III. Coordination of Production and Sale

1. Wine

The general opinion was that in view of the nature of the program drawn up respecting wine by the Monetary and Economic Conference, it should be left to the producing countries to endeavor to conclude agreements among themselves.

In this connection it was suggested to M. Germain-Martin that the French Government, which had brought the question of wine before the London Conference, might approach the governments of the principal producing countries.

The most qualified body to study those agreements is, as the London Conference’s report clearly indicates, the International Wine Office, acting in cooperation on the one hand with the Economic Committee of the League of Nations on the other hand with the International Institute of Agriculture.

2. Coal

After an exchange of views, Mr. Colijn said that he would suggest to Mr. MacDonald that he should ask the Mines Department to approach British producers with a view to their taking the initiative of calling a meeting of the chief European producers (Great Britain, Germany, Belgium, France, Poland). These negotiations might later be extended to the producers of other countries (such as the Netherlands, Czechoslovakia, etc.).

Possibilities of reaching an understanding having thus been created, the governments concerned would find the ground well-prepared for the possible conclusion of agreements between them.

Mr. Hill (Great Britain) informed the meeting that the Mines Department of his Government had already intervened to ask the Central Coal Board to examine this question. This body’s opinion was, however, not yet known.

3. Dairy Products

Those present were as follows:

Mr. Colijn	Netherlands (Chairman)
Dr. Walter	Germany
Dr. Koehler	Germany
Mr. Wohlin	Sweden
Mr. Stebelski	Poland
Mr. Roman	Poland
Mr. Borberg	Denmark
Mr. Laur	Switzerland
Mr. Stucki	Switzerland
Mr. Longobardi	International Institute of Agriculture

The Chairman pointed out that the London Conference had requested the governments to supply the Secretariat with all the material at their disposal on the question of dairy products, and to state their views on the establishment of an International Milk Council. Only a small number of countries had so far replied to the Secretariat.

The discussions then developed that the problem of dairy products was exceedingly complicated and had not been the subject of a thorough study up to the present. It was therefore decided that Dr. Laur (Switzerland) would make an investigation, through personal contact with national organizations for dairy products, to explore the possibility of an eventual regulation of competition among the big exporting countries by apportionment between themselves of the quotas established by the importing countries. Furthermore it was decided to request the International Institute of Agriculture at Rome, which is preparing a statistical study of the industry with particular reference to international trade in dairy products, to make such information available to the Economic Committee of the League. Finally, it was agreed that this question should be placed upon the agenda of the latter, which, at its next session, would consider the results of the work undertaken and notify Mr. Colijn accordingly.

4. Timber

The representation at the meeting on timber was as follows:

Mr. Colijn	Netherlands (Chairman)
Mr. Walter	Germany
Dr. Koehler	Germany
Mr. Wohlin	Sweden
Mr. Wykman	Sweden
Dr. Perne	Yugoslavia
Mr. Manion	Canada
Mr. Kuenz-Jizersky	Czechoslovakia
Mr. Stebelski	Poland
Mr. Neculcea	Rumania
Mr. Schueller	Austria
Mr. Longobardi	International Institute of Agriculture

Following an exchange of views on this question, the general opinion was to the effect that no useful purpose would be served by resuming any international action on this question before the Northern countries (Norway, Sweden, Finland, and Russia) could come to some agreement among themselves.

It was resolved that the Economic Committee would review the question at its next session in November and let the Chairman, Mr. Colijn, have particulars enabling him to fix the date when the Sub-Committee on Timber would be asked to resume its work.

5. Copper

As the question of copper³⁰ has already formed the subject of an exchange of telegrams between the Department and this office, the results of the conversations on this commodity are not repeated here.

IV. Public Works

Very serious doubts were raised as to the possibility of obtaining practical results by convening in the near future the Sub-Committee provided for in the Conference’s resolutions on this subject.

In view of these meetings being private wherein informal expressions of opinions were made, the foregoing information was imparted to me on a confidential basis.

Respectfully yours,

Prentiss B. Gilbert

26. Post, p. 779.
27. Not printed.
28. League of Nations, Monetary and Economic Conference, Report to the Council By His Excellency, M. Paul Hymans, Vice-President of the Monetary and Economic Conference (C.534.1933.II); see also report by the Rapporteur to the Council on economic questions (C.532.1933.II).
29. Johan Ludwig Mowinckel, Norwegian Prime Minister, head of the Norwegian delegation to the Monetary and Economic Conference and to the League of Nations.
30. For correspondence relating to a prospective conference on copper, see pp. 775 ff.