611.573/57
The Norwegian Legation to the Department of State
It is daily becoming more evident that the exclusion of Norwegian whale oil from the American market is having very unfortunate effects. As a direct result of the prohibitive importation tax on whale oil passed in May this year25 Norwegian-American trade is being diverted into other channels.
Instead of Norwegian whale oil, a well-established article on the American market, there is being imported into the United States unprecedented quantities of tallow from other foreign countries.
At the same time Norway, the American market being closed to her, has been forced to find an outlet for the whale oil in new markets. During the last few months we have sold to Germany whale oil for more than 30 million kroner and products of whale oil (solidified oil) for further 8–10 million kroner. In addition to this, large quantities of whale oil has been exported to Germany in direct exchange for German goods.
In connection with the above mentioned export of whale oil and products to a total value of almost 40 million kroner, a clearing agreement has been concluded with Germany according to which the payment for the whale oil shall be made gradually through said clearing. The balance is at present 4 million kroner in Norway’s favor, and it is being examined how additional Norwegian orders can be placed in Germany to liquidate this favorable balance. This is the only possible way for Norway to obtain payment as German currency is not available, due to exchange restrictions.
If no change is made with regard to the exclusion of Norwegian whale oil from the American market, there is much reason to fear that this situation will continue and even develop still further during the coming season: Norway will be compelled to sell her whale oil to Germany, and in exchange to increase, abnormally and artificially her purchases of German goods. It is unavoidable that in this way Norway, much against her natural inclination, will be driven by circumstances to substitute to a large extent German goods for those she has been accustomed to buy from the United States.
- 48 Stat. 762.↩