862.504/348: Telegram

The Ambassador in Germany (Dodd) to the Secretary of State

137. Department’s 75, June 22, 3 p.m. Although I have several times urged Foreign Office to make reply to the oral representations none has been forthcoming and as already indicated I am inclined to think that reply will be delayed as long as possible and doubt if it will be satisfactory [Page 464] when it comes. In the meantime American firms continue to lose orders and even if the Germans should contend that provisions of the law in question only concern the application of depreciation to income tax deductions it still would seem clearly to constitute discrimination against replacements of foreign manufacture and hence a violation of article 8 of our treaty.

I am of the opinion that only vigorous formal representations will bring about an entire abandonment discrimination.