611.5131/1066: Telegram
The Secretary of State to the Ambassador in France (Straus)
136. Department’s 120 April 4, 9 p.m., and your 328, April 12, 1 p.m. Garreau-Dombasle came in on April 8 to say that he had received instructions from his Government to the effect that it was anxious to go forward with trade agreement discussions on a broader scale. It developed during the conversation, however, that Garreau-Dombasle could not give any distinct indication of the manner in which the French would broaden out the scope. He was non-committal in respect of duty reductions below existing minimum rates, and it was not at all clear what treatment might be expected in respect of quota liberalization on either agricultural or industrial items. He said that he would like to have a list of the considerations which this Government would like to put forward as items for discussion. It was pointed out to him that we would wish to reserve for the negotiations the list of exceptions to minimum treatment, and particular [Page 218] mention was made of preserved fish. It was again reiterated that we would expect some liberalization of quotas, and that there should be some items on which France should be in a position to make duty reductions. In fact all the items which you suggested might be raised with the French Ambassador have been covered from time to time during the course of the informal discussions between Garreau-Dombasle and officers of the Department. Garreau-Dombasle wanted an informal written list which the Ambassador could take back to France with him. It was felt that it would be better not to put these ideas in writing, but the Ambassador was told orally the considerations which we have in mind.
The last offer put before us by Laboulaye, though by no means entirely satisfactory, left the Department with a substantial hope that an agreement between the two countries could be reached. We suggested to Laboulaye that he resume his efforts to secure satisfaction on some of the points I have discussed above; and that correspondingly, it might be possible for us, after examination of the field, to make more extended concessions than had been discussed. Laboulaye appeared to be willing to undertake this task and is expected to do so while in Paris. I asked him to keep in touch with you.
It is important that the French Government realize that any agreement reached between the two countries must convince American opinion, which as you know is critical of the treatment extended to American trade by France, that it represents a just quid pro quo arrangement. On the other hand any feasible agreement would appear to be necessarily more limited than that outlined in your 328.11
In these circumstances, the intimations that you received from the French Government, as stated in your 328, and similar intimations given by Garreau-Dombasle to the Department, that the French Government may in the near future shift its basis of quota allocation, which we assume might affect our present modus vivendi on quotas, are disturbing. Such an action might gravely complicate the discussions, and the negotiations, which we hope could be announced after Laboulaye has talked the matter over with his Government.
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