611.6231/683
Memorandum by the Assistant Chief of the Division of Trade Agreements (Hawkins) of a Conversation With the First Secretary of the German Embassy (Meyer) and Mr. R. E. Schoenfeld of the Division of Western European Affairs
Dr. Meyer called to discuss the possible termination of generalization to Germany of tariff concessions when the present most-favored-nation commitment expires on October 14, 1935.
He inquired whether notice of termination of such concessions to Germany could be postponed for thirty days. He pointed out that section 2 of the President’s letter of direction to the Secretary of the Treasury, which provides for suspending the application of concessions to countries which discriminate against American commerce, states that the proclaimed duties shall cease to apply to the products of certain countries, including Germany, thirty days after the date on which the Secretary of the Treasury is advised by the President that the most-favored-nation treaty obligation has ceased, or on a certain day will cease, to have effect. Dr. Meyer pointed out that under the language of the President’s letter it was not necessary to give notice in advance of the termination of the obligation; that notice could be given that the obligation “has ceased” to have effect. He requested, therefore, that such notice should not be sent on September 15 (to take effect on October 15) but should be postponed until October 15 (thus taking effect on November 15).
In supporting this request, Dr. Meyer stated that the announcement of withdrawal of the generalization of tariff concessions at this time, when the German Government is seeking to work out a basis for commercial negotiations with the United States and trying to make arrangements for servicing adequately Dawes and Young bonds held in the United States and liquidating the grain credit of 1930, would probably be harmful. The German Government, he said, was still considering the reply to be made to our recent note regarding possible negotiation for a reciprocal trade agreement. The German reply could probably not be completed by September 15, at which time it was understood the notice to the Treasury might be given. The publicity regarding the non-application of our minimum rates to German [Page 458] products, which would necessarily attend the issuance of that notice, would be taken by certain elements in Germany as indicating that a satisfactory adjustment of the commercial relations between the two countries was unlikely. He expressed the opinion that the economic factors involved in postponement of the notice for thirty days were not proportional to the possible harmful effect of the withdrawal at the earlier date.
Mr. Hawkins pointed out that the order of the President regarding the generalization of concessions was issued on April 1, 1935,20 and that notice to the Treasury Department of the termination of the treaty obligations would be only a routine step in carrying out a definite order which was given five months ago. Dr. Meyer was assured, however, that the request which he had make would be given due consideration.
He inquired whether he might be informed as soon as practicable of the decision in this matter as the Germany Embassy was expected to make an early report to its Government.
- For the text of letter of April 1, 1935, from President Roosevelt to the Secretary of the Treasury, see Department of State, Press Releases, April 6, 1935, p. 216.↩