811.114 Liquor/772: Telegram
The Ambassador in France ( Straus ) to the Secretary of State
692. Reference my telegram No. 662, September 7 [8], 2 p.m., and despatch No. 1198 of September 11, 1934.64 Note has just been received [Page 202] from Foreign Office in response to proposal contained in Embassy’s aide-mémoire of September 7. The Foreign Office is insistent on obtaining protection in American markets for names of origin of French wines and emphasizes that such protection must be complete and be based on French law of May 6, 1919, which provides that names of origin are the exclusive property of those entitled thereto by said law; that is, the names must not be inexactly employed even when accompanied by a qualifying expression such as type or American.
The Foreign Office states it would be glad to conclude an accord provided it contains same guarantees to French wine quoted as are contained in law of May 6, 1919 and commercial conventions on subject negotiated by France with numerous countries including Belgium and Spain it being implied that if such satisfaction can be given the United States may receive relief from 4 and 6 percent import turnover tax on all products.
In case a material delay is necessary for putting into effect such guarantees for French wine names and American Government desires prompt relief from import duty turnover tax Foreign Office is willing to attempt to find basis for agreement on subject. The Foreign Office prefers to consider granting of minimum tariff on rice as subject for separate understanding, a view which I foresaw as probable.
The French note is unsatisfactory in that their demands might possibly entail legislative action or treaty to effect the guarantees asked as to geographic names. On the other hand I gather from conversation that French Government may be asking for the maximum but be willing to accept somewhat less. Fundamentally the French desire the complete interdiction of the use of generic marks as I understand from the regulations on distilled spirits was done in the case of cognac which seems satisfactory to them if penalties for abuse are sufficient. They orally suggest that we coin distinctly American wine names or else use some descriptive expression. While not attempting to suggest a solution there would seem to be numerous possibilities such for example as the use of American geographic names like White Santa Clara Valley wine, names which would gradually become distinctive.
The French Government representative requests that we inform it as soon as possible how far we are prepared to go in granting protection stating that they will give study to any counterproposal. Since it was intimated that if the advantages accorded are not considered fully compensatory the French might hesitate in giving relief from the import turnover tax to the complete list of American products. The Embassy emphatically stated that no bargaining would be entertained and that Embassy’s proposal might be considered withdrawn [Page 203] provided they were not disposed to afford complete relief. Despatch will follow.65
Please telegraph how far the American Government is able to go in meeting French desire as to entire suppression of generic names and penalty measures for abuse and in the meantime I strongly urge sudden definitive action by the Federal Alcohol Control Administration on wines and champagne be deferred.