611.516 Wines/1: Telegram

The Acting Secretary of State to the Ambassador in France (Straus)

369. Discussions looking to an increase in the temporary wine quota to France were completed this morning with the French Commercial Attaché. An exchange of notes is awaiting signature. It has been agreed that we will double the present quota of 783,000 gallons, and in exchange for that the French have agreed to increase the quota for the next quarter on apples and pears to 200,000 quintals, and for salt pork products and hams to increase the quota for the next quarter by 500 quintals. Announcement of this agreement will probably be made public tomorrow morning.

The Commercial Attaché proposed that in exchange for a yet further increase in the wine quota the French Government would be prepared to give an additional quota of 4,650 kilograms on patent leather, 40 quintals on radio tubes, 125 quintals on dynamos, and would increase the quotas on non-cutting tools and twist drills. They would, furthermore, be prepared to reduce the turnover tax on copper from 4 per cent to 2 per cent. Discussions with regard to this latter proposal will be renewed the latter part of next week. I will appreciate receiving any suggestions which you may have to make with regard to this proposal, or possible substitutes.