600M.116/6
The Chargé in Lithuania (Kuykendall) to the Secretary of State
[Received March 13.]
Sir: I have the honor to report; with reference to Minister MacMurray’s telegram No. 12 dated February 14th, 9. a.m.,10 and to his despatch No. 183 of the same date, that assurances have been given that the tariff and other restrictive measures reported in telegram No. 8 of February 8, 1935, 2 p.m.,10 were not promulgated to reduce the volume of American trade with Lithuania but were intended to cut down Lithuanian imports from certain other specified countries. Of course it was to be expected that such assurances would be given, for no Government official would admit that the new measures were directed against the United States, but the fact that the same information has been received from several sources is, to some extent, reassuring.
It can be understood that the purpose of the new measures is to direct the imports of this country so that there may be effected a more balanced foreign trade. Such an end is attainable by cutting down Lithuanian requirements for certain foreign goods and by reducing purchases from certain countries. With regard to Lithuanian trade with the United States, it is appreciated that the situation is different than in the case of some other countries, and so it was apprehended that possible action unfavorable to the United States would result not from the actual measures themselves but from the manner in which they might be administered.
Minister MacMurray took the occasion to intimate (to Mr. Bizauskas, Director of the Juridical and Administrative Division of the Ministry for Foreign Affairs and former Lithuanian Minister to the United States) the apprehension felt that the administration of the new measures might lead to instances of actual discrimination. It was stated in reply that heretofore Lithuania had no monetary restrictions nor had this country taken measures comparable to the action followed by neighboring nations in the matter of restricting and directing foreign trade. The time had come, however, when it was necessary that action be taken to safeguard the interests of this country; in other words, the measures were considered as required for self-protection. It was suggested that it would be advisable to discuss the question of the new restrictive measures with Mr. Stasys Kuzminskas, head of the Economic Division of the Ministry for Foreign Affairs, to obtain particulars not only regarding the measures themselves but the manner in which they would probably be administered.
Mr. Kuzminskas, who converses in German rather than in French, stated, as did Mr. Bizauskas, that the new measures were intended [Page 569] primarily to protect the interests of this country. Mr. Kuzminskas understood very well the favorable situation which Lithuania enjoys in its foreign trade with the United States, and while he endeavored to minimize the importance of remittances from Lithuanian immigrants in our country, he was aware that such remittances are still of appreciable volume. Likewise, he realized the value of the support given Lithuanian exchange by the checks of the Veterans Administration forwarded to individuals living in Lithuania. A somewhat reassuring statement was made by Mr. Kuzminskas to the effect that the United States would have “kein[e] Gelegenheit für protestieren” (no occasion for protest) either at the present moment or at a later date—presumably when the administration of the new measures might give rise to real apprehension that discriminatory action was being taken against American trade.
In a conversation which I had with Mr. Charles Hanson, director of the Vacuum Oil Company A/s of Copenhagen, this gentleman stated that he personally was not under apprehension that the Lithuanian Government would take action which could be interpreted as a discriminatory measure against American trade. It was his opinion that the difficulties as regards American participation in the Lithuanian market were in reality fewer in number and of a much less irksome nature than those experienced in other countries.
While only reassuring information has been received as regards the probable results of the new restrictive measures, it can not be taken for granted that no action of any sort will be taken to direct trade away from the United States.… Determined effort will be made to obtain concrete evidence of any discrimination, should it develop that action unfavorable to trade with the United States has been taken by the Lithuanian Government.
It has been learned that the Lithuanian Government has taken action to place a large tax on import licenses, the effect of which may restrict the granting of such licenses. If a large tax is placed on import licenses, only important firms and semi-Government organizations will be able to pay such charges, and smaller firms will thus be prevented from engaging in import trade.
Respectfully yours,