611.5131/1212
The Chargé in France (Marriner) to the Secretary of State
[Received August 2.]
Sir: Referring to my despatch No. 2023 of July 19, 1935, I have the honor to report that the Franco-German commercial negotiations having at least temporarily broken down the French Government found itself free to proceed to the determination of the supplementary quota allocations which might be granted the United States. In consequence an inter-Ministerial meeting was held on July 23 with a view to deciding upon the precise tariff, quota and other concessions that France can offer. Subsequently, on the evening of July 25, The Ministry for Foreign Affairs instructed the French Embassy at Washington [Page 228] to press for early conclusion of the Franco-American treaty and furnished the Embassy with a list of the concessions decided upon. This morning the competent officials of the Commercial Section of the Ministry for Foreign Affairs acquainted an Embassy representative with the principal points outlined in the telegraphic instructions addressed to M. de Laboulaye. It was stated that the instructions comprise the maximum offer that France is prepared to make save for the possible modification of certain details.20 Although the Department by the time of this despatch reaches it will be better acquainted than the Embassy with the precise nature of the French proposals, a summary of the projected concessions made known to the Embassy may be justified in view of the observations made by the Foreign Office official on several points. The salient features of the French concessions are as follows:
While the American percentages for the normal quotas remain fixed throughout the life of the treaty, the supplementary quotas run for a year only but are presumably susceptible of renewal, provided the treaty remains in force longer than the initial year. Supplementary quotas in a stipulated percentage will be accorded the United States upon the following commodities: Ex 45 (frozen salmon), Ex 84 (apples and pears), 178-bis, 178-ter-A, Ex 298, 347-ter, Ex 461 G, B and I, Ex 462 A, 464, 510 A, 512 C, 521, 522, Ex 537, Ex 549, 568–bis, Ex 572–bis E and 634-quater A (d).
With regard to Ex 45 (frozen salmon), it would appear that our present normal quota of 24% is confirmed and a supplementary quota of 24% granted to take into account shipments in transit, the total to be accorded the United States therefore being the same as that enjoyed in the present calendar year in virtue of the special agreement on the subject reached between the two Governments. The frozen salmon quota would, in consequence, appear to be as generous as any we might reasonably claim.
The Foreign Office official asserted that it had been impossible up to the present time to reach an agreement for the granting of a supplementary quota for automobile chassis. He however held out hope that if the American Government were to press for such a supplementary quota it might be possible to obtain a supplementary quota for automobile chassis of approximately 1,000 quintals with a further provision that within such limits a 50% reduction from the minimum tariff rate might be accorded the United States. As to tariff concessions, the French are willing to suppress the following items from their list of exceptions to minimum tariff treatment: 76–ter, 110–bis, Ex 112, Ex 175, 603–ter, Ex 47, Ex 49 and 459 A to N. In granting [Page 229] the minimum tariff to the United States (on 76–ter) it is observed that henceforth the minimum and general tariff rates would be made one and the same amount so that while in principle the United States would receive minimum tariff treatment, actually no distinction would be made between American products and those of any other country. In according the United States the minimum rate on Ex 47, pilchards, France would fix the minimum tariff at a new and higher rate somewhere between 400 and 480 francs per hundred kilograms gross. It is inferred that if the Department laid sufficient emphasis on the importance of this item it might be possible to secure the adjustment of the new minimum tariff rate at the lower figure of 400 francs. At the same time the French Government is prepared to maintain the present American quota for pilchards, understood to be 50,000 quintals.
The Ministry for Foreign Affairs likewise indicated that it has offered the United States slight reductions from the minimum tariff rates on the following schedules: sewing-machine heads, pens, fountain pens and detached parts thereof, grapefruit and quaker oats. Finally, the French Government is disposed to restore to the United States minimum tariff rates in Indochina, Martinique and Guadeloupe, and to refund to importers who have paid higher rates of duty the difference between payments under the minimum rates and the general tariff rates.
It is observed that the general Articles of the draft treaty make no allusion to the suppression of the surtaxe d’entrepôt21 lying against the United States and other overseas countries. The Foreign Office representative in answer to an inquiry stated that it would be difficult to suppress this charge and that the tax lies more against certain articles of merchandise than it does against specific countries and hence is not considered as discriminatory. He did not say, however, that the French Government would refuse to give some further consideration to the matter in the event that the Department should feel it advisable to ask that an effort be made to adjust this tax in line with the taxe d’origine levied on the products of European countries. Evidently the chief obstacle which would be encountered by the French in meeting such a request would emanate from the Ministry of Finance.
Since forwarding the Department the views of the Embassy, Consulate General and Commercial Attaché with regard to desiderata which might possibly be included in the American request, one or two additional items have been brought to our attention by importers here. I now pass them on without recommendation for such study as they may merit. Charles André et Compagnie of Paris request that an intermediate tariff rate instead of the present general tariff rate [Page 230] be secured for the United States under the French tariff item Ex 581 (armes de commerce). He states that the general rate impedes the importation of such articles and that once the political situation here renders it possible to remove the restrictions on the importation of arms, France should provide an excellent market for American shotguns, rifles, pistols and revolvers designed, in particular, for sport.
The Maison Henri Perrier of Bordeaux finds itself hampered in its efforts to sell American agricultural machinery by the high tariff rates. It points out especially that the rates applicable to detached parts for machines falling under tariff items Nos. 532, 533 and 535–bis A are so exaggerated as to cause serious inconvenience. Moreover the benefit of the authorized 50% tariff reduction on detached parts is so studiously circumscribed by regulations that it is impossible to avail of it in the instance of the ordinary customer.
Respectfully yours,