611.5631/186: Telegram
The Secretary of State to the Minister in the Netherlands (Emmet)
13. Department’s 12, March 30, 6 p.m. Your 26 April 4, 4 p.m.6 The President proclaimed the trade agreement with the Belgo-Luxemburg Economic Union on April 1st and issued to the Secretary [Page 583] of the Treasury on the same date a letter7 directing that the Belgian concessions shall be applied to the Netherlands and its colonies from the date upon which they become effective until 6 months after the date of his letter.
On April 2 the Netherland Chargé d’Affaires telephoned an officer of the Department and complained bitterly that the President’s letter to the Secretary of the Treasury left the implication that the Netherlands was discriminating against American commerce. He stated that when he had called at the Department on March 30 [29] he had done so under specific instructions from his Government to ask that the Netherlands not be included in any list indicating that the Netherlands was discriminating against the United States, and that if the Netherlands were to be included in such list his Government insisted on an opportunity to discuss the matter with this Government in advance. He said that in fact the Netherlands was not discriminating against American commerce. He was told in answer that perhaps that was a matter of difference of opinion, and that it was regretted that there may have been some misunderstanding in the matter, but that he had not made such a specific request.
The Chargé d’Affaires in terminating his conversation stated that he proposed to send a copy of the President’s letter to his Government without attempting to explain the provisions with regard to the Netherlands but that he feared that his Government would resent the implication in the President’s letter that the Netherlands is discriminating against American commerce.
In reply to Lamping’s observations you may indicate that we fail to understand the Washington Legation’s position since the extension of the Belgian concessions to the Netherlands for 5 months from the time they become effective is regarded here as a distinct concession in view of the fact that under the authority of the Trade Agreements Act the concessions might have been withheld altogether. We cannot feel that the Netherland Government will regard the action of this Government as unreasonable particularly when it realizes that the purpose of the President’s instructions to the Secretary of the Treasury was not to deny the Belgian concessions to the Netherlands and to the other countries with which we are negotiating trade agreements but, on the contrary, to guarantee these concessions to them for a period which it is fully expected will be sufficient to enable the Governments concerned to reach an agreement with the United States which will satisfactorily regulate any difficulties which may at present be outstanding.