651.113/184
Memorandum by the Assistant Chief of the Division of Western European A fairs (Culbertson)
Reference is made to Dr. Feis’ memorandum49 of conversation with Mr. Gaucheron50 on June 13, at which time Mr. Gaucheron left with Dr. Feis a memorandum expressing a desire to be informed of the Department’s decision with regard to a proposal made by the French Foreign Office to our Embassy, to the effect that if the United States would remove the excise tax on coal from Indo-China France would accord American rice its minimum rate of duty.
Mr. Gaucheron was asked to call this morning and Dr. Feis explained to him the position in which this Government found itself, and its inability, irrespective of what its wishes might be, to remove the excise tax on coal from Indochina. Mr. Gaucheron’s attention was called: (1) to the fact that by reason of the provisions of the recent amendment to the Tariff Act, the American duty on Indochinese coal had [Page 195] been removed, and that, therefore, Indochinese coal might now enter duty free but not free of the excise tax; and (2) to the fact that the excise tax in question would automatically lapse at the end of the present fiscal year unless Congress should take steps to have that tax renewed.
Dr. Feis also explained that for the present at least we would not be interested in reciprocal discussions which involve only one commodity, but to limit ourselves under the authority of the recent amendment to the Tariff Act to discussions of a broader character involving the general commerce between this country and any other country with which discussions were undertaken. Mr. Gaucheron took down considerable notes and said that he would explain the matter to his Government.