611.5131/1052a: Telegram
The Secretary of State to the Ambassador in France (Straus)
113. The French Ambassador2 came in yesterday afternoon to say that he had been instructed to notify us that the French Government is now ready and desirous of entering into negotiations for a trade agreement. He said that his Government would be prepared to grant minimum tariff treatment to all American products except about 62 commodities; to suppress the turnover tax on all American products, and to discuss the question of quotas. His Government would ask for most-favored-nation treatment from the United States, but since it is unable to grant complete most-favored-nation treatment to American products would be prepared to accept exceptions made by the United States; for a reduction in our tariff rates on laces, champagne, cigarette papers and other commodities previously mentioned, presumably Roquefort cheese, canned mushrooms, hand-sewn gloves, perfumes and briar pipes, which were included in the proposals made by France in November, 1934, and for some kind of an agreement to safeguard against the effects of depreciated currencies. He stated that the granting of minimum tariff on American rice would be subject to the suppression of the excise tax on Indo-Chinese anthracite coal, and also that the French Government would like to enter into a discussion concerning the appellation of wines.3 In the interest of economy endeavor to obtain from the Foreign Office a list of the commodities which the French propose to except from the minimum treatment provision.
On April 1 the President will proclaim the Belgian trade agreement.4 At the same time he will if he approves the procedure now suggested issue a letter of instruction to the Secretary of the Treasury listing the countries to which the benefits arising from the Belgian agreement will be extended. Had it not been for the receipt of the [Page 212] proposals now before us extension of the Belgian rates would not have been made to France. As it now stands France is included amongst those to which the benefits will be extended so long as the President’s direction in respect thereof is not modified.
The French Ambassador is coming in again on Monday and will be told orally and by aide-mémoire that his Government’s proposals are receiving the earnest attention and consideration of this Government; that it is hoped that these proposals point the way to a satisfactory basis for the negotiation of a trade agreement; that before agreeing to undertake definite negotiations this Government feels that it would be desirable to reach a further clarification of the French Government’s suggestion and to this end it is suggested that informal preliminary conversations be entered into forthwith. It will be stated that in order that these discussions may have their inception in the greatest spirit of mutual cooperation, the Government of the United States is temporarily extending to France the Belgian concessions, and that this extension will continue for a reasonable period of time pending the outcome of the preliminary discussions. It is expected that these preliminary discussions will take place next week.
Please let me have your views and recommendations with regard to this matter.
- André de Laboulaye.↩
- See Foreign Relations, 1934, vol. ii, pp. 196 ff.↩
- For correspondence concerning this agreement, see pp. 102 ff.↩