651.113/123
The Chargé in France (Marriner) to the Secretary of
State
No. 3593
Paris, May 16,
1933.
[Received May 24.]
Sir: I have the honor to acknowledge the
receipt of the Department’s telegraphic instruction No. 131 of May
13, 2 p.m., 1933, requesting me to make representations with regard
to the discrimination against American products imported into France
introduced through the negotiation by the French Government of
double taxation agreements with third countries providing that the
products of such third countries shall be relieved from the
increased French import turnover tax.
In view of the importance of this question I felt it preferable to
make the representations asked by the Department in written form. A
copy of my note, which I today left with M. Léger, Secretary General
of the Ministry for Foreign Affairs, is enclosed for the information
of the Department.
Respectfully yours,
[Enclosure]
The American Chargé (Marriner) to the French Minister for Foreign
Affairs (Paul-Boncour)
No. 2386
Paris, May 16,
1933.
Excellency: I have the honor to recall
that on August 2, 1932, the Ambassador addressed to M.
Herriot3 a personal note with which he enclosed a
memorandum4 inviting attention to certain commercial
difficulties existing between France and the United States. One
section of the memorandum dealt with the discrimination against
American exports to France introduced by the application of the
Franco-Belgian Convention of June 18, 1932, to avoid double
imposition as regards transmission taxes and turnover taxes on
imports from one country to the other. By the terms of this
Convention, Belgian exporters were relieved of the necessity of
paying the increased rates under the French import turnover tax
on shipments to France. It was pointed out by the Ambassador
that similar reductions as regards this tax had not been
accorded products [Page 157]
imported into France from the United States, with the
consequence that the market for the American products was
prejudiced vis-à-vis competitive Belgian merchandise.
There has now been ratified by the French Government a double
taxation arrangement with Italy whereby Italian products, like
those from Belgium, will be relieved from the increased French
import turnover tax. My Government is increasingly concerned
over the situation characterized by these two preferential
accords, a situation wherein American products introduced into
France are placed at a distinct disadvantage as compared with
the goods of Belgian and Italian origin.
Accordingly, my Government has instructed me to inform Your
Excellency that it does not feel that the method of
discrimination in favor of third countries is warranted in order
to avoid double taxation. I feel that the inequity is apparent
of denying to American products as favorable treatment as has
been granted to the products of other countries largely because
those countries had instituted special taxes which adversely
affected French exports. It is therefore earnestly hoped that a
way will be found of eliminating this element of discrimination
against American imports.
I avail myself [etc.]
