Memorandum by Mr. Landreth M. Harrison of the Division of Eastern European Affairs

Conversation: Mr. Rero Järnefelt, Minister of Finland;
Mr. Henry F. Grady, Chief, Division of Trade Agreements;
Mr. Landreth M. Harrison.

The Finnish Minister called to deliver the Finnish desiderata4 in connection with the proposed trade agreement with Finland. He pointed out that this desiderata consisted of the following:

General Proposals
Schedule 1 (concessions by Finland)
Schedule 2 (concessions by the United States).

In connection with the General Proposals, he stated that the Finnish draft does not contain any of those provisions in the American specimen list which were already included in the American-Finnish commercial treaty,5 since it was the view of his Government that the proposed trade agreement would not affect the validity of that treaty. He added that no provision covering exchange restrictions, et cetera, was included because Finland and the United States did not restrict foreign exchange transactions. Mr. Grady commented that such a provision in the proposed agreement would be of value in the event that either the United States or Finland adopted foreign exchange restriction in the future.

The Minister then went on to state that he had been instructed to point out in connection with Schedule 1 that Finnish agriculture [Page 205] was of the northern type and that the Finnish Government had consistently followed the policy of retaining full control over duties on agricultural products, in order to be in a position to adjust them to the periodic changes arising out of the northern climate (agricultural production in Finland varies greatly from year to year depending on weather conditions).

In conclusion, he stated that his Government was anxious to have an agreement concluded as soon as possible, and expressed the hope that the negotiations could be expedited.

Mr. Grady replied that we were equally anxious to have an agreement with Finland completed in the near future and that the Finnish desiderata would be carefully studied by the Department with a view to finding a basis for an agreement. As soon as this study was completed, the Department would, he added, communicate with the Minister.

  1. Not printed.
  2. Treaty of Friendship, Commerce and Consular Rights, signed February 13, 1934, Foreign Relations, 1934, vol. ii, p. 134.