600.628/13½
Memorandum by Mr. R. E. Schoenfeld of the Division of Western European Affairs
The German Ambassador called on Mr. Sayre at 12:15 today. He said that he had seen the attached article29 in the New York Journal of Commerce of Tuesday, November 26th, referring to German export bounties and German dumping in the United States and to probable action by the Treasury Department against German imports.
Dr. Luther said that reports of bounties on German exports to the United States and of German dumping in this country were altogether inaccurate. German exporters to the United States were only permitted to make use of the registered marks and ASKI account systems, which have been in effect a long time. He added that the recent export levy on industry to promote exports which he characterized as a payment by private industry and therefore not a Government subsidy, was not used in connection with exports to the United States.
Mr. Sayre explained to Dr. Luther that the Treasury Department was constantly scrutinizing all systems used in promoting exports to the United States. He added that it was mandatory upon the Secretary of the Treasury if subsidies were paid, either direct or indirect, to collect countervailing duties. Dr. Luther said that Germany had no intention of paying subsidies or bounties on exports to the United [Page 472] States. Mr. Sayre pointed out that it was not a question of intent and reiterated that if a subsidy or grant (either direct or indirect) were paid the levying of countervailing duties was mandatory upon the Secretary of the Treasury.
Mr. Sayre went on to say that he would be glad to bring the facts which the Ambassador had presented to the attention of the Secretary of the Treasury and suggested that the Ambassador provide him with a memorandum of the points that he had made. Dr. Luther said he would be glad to do so and suggested that before drawing up such a memorandum he would like to have Dr. Meyer, First Secretary of the Embassy, who was the Embassy’s specialist on these questions, discuss them with Mr. Sayre or with Mr. Schoenfeld. Mr. Sayre suggested that Dr. Meyer see Mr. Schoenfeld.
Dr. Luther said, speaking entirely personally, he thought that any new trade troubles here would strengthen the elements in Germany which were pressing for devaluation. He hoped there would be no further difficulties for trade had already been reduced so that German exports to the United States only amounted to $6,000,000 a month.
- Not reprinted.↩