611.60F31/114

Memorandum by the Chief of the Division of Trade Agreements (Grady)

The Czechoslovakian Minister was in the building and called to enquire, as he has on several occasions, regarding the status of a trade agreement with Czechoslovakia. I told him that the survey which we had been making was not completed, but that we were hoping it would be in the next few weeks. In former discussions it was explained to the Minister that we are approaching the problem of our trade with Czechoslovakia from the standpoint of, first, a replacing of the present Modus Vivendi with one for a longer period and with expansion of the Danubian Preferences clause, second, the announcement of intention to negotiate a trade agreement with Czechoslovakia in which the Danubian Preferences problem would be taken care of in one of the general provisions. The survey now being made will determine our policy as regards the type of agreement that we shall ask the Czechoslovakian Government to enter into.

In passing I called the Minister’s attention to the fact that we have had complaints of discrimination against our imports into Czechoslovakia despite the Modus Vivendi of April 2 [March 29], 1935.

H[enry] G[rady]