611.9131/42
The Persian Minister ( Djalal ) to the Assistant Secretary of State ( Sayre )
My Dear Mr. Sayre: I am in receipt of your letter of December 5 concerning the trade between Persia and the United States. I am very glad to learn that the Department of State, as you mentioned in your letter, concurs in the opinion expressed by the Persian Department of Commerce, that the export of carpets to the United States [Page 889] and the shipment of American automobiles, etc., to Persia, taken together form such a preponderant part of the trade between the two countries as to justify the two Governments in endeavoring to negotiate a reciprocal trade agreement.
But, with reference to your statement that your information regarding the present treatment of this trade differs very materially from that expressed in my letter of November 20, and later on in support of that you mention buying a certificate of issue in order to obtain an import permit together with banking exchange transactions at rates which vary from 50% to 100% higher than the market value, permit me to state that these things which you mention hardly stand in contradiction of what I said, because most of these charges and expenses are the result of banking and commercial transactions which more or less exist in every country, and have hardly anything to do with the Government, perhaps with the exception of the exchange question.
All the importers from foreign countries not only incur all these Chargés and expenses, but, in addition, they have to pay heavy customs duties, which the Persian Government has exempted in favor of the importation of automobiles, etc., from the United States. While it is open to the Persian Government to import automobiles, etc.’ from other countries, they particularly do their best to encourage importation of these goods from America in order to strengthen commercial relations with your country. Besides, if importers of automobiles, etc., undertake to export Persian productions in return for what they import, they can dispense with the charge of a certificate of issue, etc.
However, I am sending your letter to the Department of Commerce with all necessary recommendations in favor of coming to a speedy agreement in the conclusion of a commercial treaty on a reciprocal basis; and I hope that the concession that you promise to make respecting Persian rugs will be of such a nature as to make it possible for the improvement of the export of rugs to this country, particularly in the case of the minimum Chargé of 50% [50 cents] per square foot on cheap carpets.
Sincerely yours,