611.5131/1283: Telegram
The Ambassador in France (Straus) to the Secretary of State
[Received October 29—2:35 p.m.]
928. Replying your 437 October 25, 4 p.m. the Embassy does not feel that merely to anticipate the expiration of French Government’s special powers on November 15 a trade agreement which is not reasonably satisfactory should be signed before the date. However, if a materially satisfactory accord can be reached much is to be gained by agreement within the time indicated since it may be some 2 months before the French Government can secure from Parliament renewal of its tariff negotiation powers and in the meanwhile the unsatisfactory quota and tariff status as regards American merchandise will continue. Moreover, there is to be considered the uncertainty of the future Cabinet situation as well as the circumstance that in order to make a good showing on his economic policy Laval is apparently very anxious to be able to point to the signature of a treaty with the United States, so that the present should be a propitious moment in which to come to terms.
The Embassy is just informed by Foreign Office that France, (1) renounces its request for tariff advantages for 6-, 7- and 8-point common cotton brocaded lace, (2) maintains its request for 44½% reduction new-fashion lace of 10½ point and finer and (3) asks 35 percent reduction for 9- and 10-point lace. Foreign Office states that renunciation of concession on the common highly competitive lace should make compliance slightly easier and that the present lace request is a sine qua non of negotiation. As stated in my telegram No. 916, October 24, 5 p.m.,25 I am inclined to feel that if we can substantially meet French requests on the three basic items French Government can be induced to go somewhat further than it has in according reciprocal [Page 233] concessions. There seems to be unconfirmed hope that inter alia it might consent to enlarge quota for automobile chassis so as to enable us to take advantage of lowered duties on that commodity.
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