662.116 Lard/31: Telegram

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

129. Despatch No. 954 of June 2123 and cable 120 June 25, 4 p.m. Summary of Foreign Office note just received replying to my 242.

Foreign Ministry refuses to express opinion in regard to Danish quota figures cited on the ground that these were not published in Germany but claims it is a generally recognized principle of international commercial policy not to apply most-favored-nation treatment to commodities object of state monopoly or similar institutions. Independent of monopoly German imports of raw materials determined by foreign exchange situation. When foreign exchange lacking issuance (by monopoly) of “acceptance certificates” legal status of which is simultaneous “delivery order” for foreign exchange is not justified. Quotas alone no longer decisive but rather available foreign exchange. Ability other countries to make full use quotas due to the clearing or issue bank agreements so that in such cases cash foreign exchange unnecessary for lard imports and purchase can be made through clearinghouse. With such countries quotas may even be exceeded without intentional discrimination against the United States but this is unforeseen effect foreign exchange problem. German Ambassador’s suggestion last January to President Roosevelt concerning trade negotiations and subsequent similar suggestions unfortunately not acceded to. Under the circumstances Foreign Office cannot recognize unilateral injury to American lard interests and in the absence of negotiations of character suggested regrets inability to envisage measures making further United States participation in German lard imports within scope monopoly share.

Text by mail.23

Laws of July 3 empower competent Ministers to take measures necessary for German economic promotion and protection and for reprisals against countries including their related states and territories which subject German economic and financial relations to discriminatory unfavorable conditions. Latter provisions obviously result British attitude.

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