611.6212/56
The German Embassy to the Department of State
During the period from the 22 to the 27 of October of this year, an exposition will be held in the Grand Central Palace, New York, under the auspices of the American Jewish Congress. Firms desiring to exhibit their goods must enter into contracts therefor, in accordance with the form of contract in the attached photostat. In this form of contract, the following sentence occurs:
“It is further agreed that no merchandise or products shall be exhibited which have been created, manufactured, fabricated in or imported from Germany.”
The conclusion has been reached, on the basis of legal opinions, in economic circles that are interested in trade with Germany, that the conditions mentioned in the form referred to above constitute a restraint of trade and a violation of the Anti-Trust Act.33 The view is taken, in particular, that the exposition, because it makes its appeal to the general public and the economic world, is to be considered as a public enterprise. It is held that the insertion of the above quoted contract clause constitutes a step which would afford justification for prohibiting the exposition. A copy of a legal opinion is attached.34
The Embassy would accordingly appreciate it if the Federal Trade Commission and the Department of Justice could take up the matter, and has the honor to request further appropriate action on the part of the Department of State.35