651.116 Nitrate/72: Telegram

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

469. Your despatch 1347, November 8, and telegram 862, November 20. I think your suggestions in connection with paragraphs A and B of the 1932 agreement are sound. By whatever name the restriction operates much the same as a quota. A global amount is fixed and shares allotted out to various suppliers. Nitrate as a commodity in trade need not be treated any differently than any other commodity and if we accept the theory that any commodity can be pulled out of the general scheme of quotas or trade in general and allotted without reference to prior trade, there would be nothing to hinder the French from treating all our trade in the same way.