611.5631/179: Telegram
The Secretary of State to the Minister in the Netherlands (Emmet)
10. Yesterday afternoon an officer of the Department discussed with Molekamp, Commercial Counselor of the Netherland Legation, the possibility of an immediate exchange of notes between the two governments providing for most-favored-nation treatment with respect to customs rates and formalities, exchange quotas and internal taxes. It was explained that the Netherlands by reason of her quota and other practices, is considered to be discriminating against American commerce; that the Tariff Act of 19343 provided that concessions made to one country as a result of a trade agreement might be withheld from those countries which discriminate against American commerce; that the President’s proclamation proclaiming the Belgian trade agreement4 would include the Netherlands as amongst those countries discriminating against American commerce, but that pending the outcome of the forthcoming trade agreement negotiations the Netherlands would be accorded the benefits of the Belgian agreement; and that in order to avoid mentioning the Netherlands in the President’s proclamation we would like to have an immediate exchange of notes which would provide for a correction of the discriminations encountered by American commerce. Copies of the proposed note were given to Molekamp, who stated that his Legation would wire immediately to the Netherland Foreign Office and inquire whether his Government was agreeable in principle to the exchange of such notes. Since it is expected that the Belgian agreement will be proclaimed about April 1, Mr. Molekamp felt that the time was quite short, but suggested that if his Government agreed in principle an acceptable [Page 582] text to both Governments could probably easily be worked out. We are in hopes that the Netherland Government will be agreeable to such an exchange in order that the Netherlands need not be mentioned in the forthcoming proclamation.