611.4331/69
Memorandum by the Assistant Chief of the Division of Western European Affairs (Hickerson)
Yesterday the Honorable E. N. R. Trentham, Commissioner for Finance of Newfoundland, came in to see Mr. Sayre1 to discuss with him trade between the United States and Newfoundland. Mr. Trentham [Page 66] said that there had been some fears in Newfoundland that Canada might obtain in her trade agreement negotiations with the United States2 tariff reductions which would place Newfoundland products at a disadvantage. He said that he had inquired of the Dominions Office in Great Britain and that he had been informed in rather vague terms that they did not believe this would be the case. He went on to say that he would be very interested to learn what the actual situation was.
Mr. Sayre informed Mr. Trentham that the most favored nation principle is the cornerstone of our commercial policy and that in pursuance of this principle we would generalize to all countries which do not discriminate against American goods the reductions accorded in trade agreements. He added that applying this specifically to the case of Canada and Newfoundland, we would extend automatically to Newfoundland any tariff reductions granted to Canada so long as Newfoundland continues to grant American goods non-discriminatory treatment.
Mr. Trentham said that he was very much relieved and pleased to hear this. He said that there had been a great deal of thought in Newfoundland about the possibility of a special trade agreement between Newfoundland and the United States. He said that he was not fully prepared to discuss the products on which Newfoundland would desire tariff reductions but that the principal ones were fish (principally of the codfish family) and frozen blueberries; he added that there was a certain amount of interest in Newfoundland in our duties on certain grades of fluorspar. Mr. Trentham said that on the other side of the picture some consideration had been given to what Newfoundland could do for the United States. Naturally he said they could grant us certain tariff reductions. In addition he referred to the extensive assistance that they have already given us in closing Newfoundland ports to vessels smuggling alcohol into the United States;3 he also mentioned the possibility of assistance in connection with furnishing information respecting American firms incorporated in Newfoundland to escape our income taxes.
Mr. Sayre informed Mr. Trentham that he did not believe that the prospects were good at the present time for a special trade agreement between the United States and Newfoundland. He said that we had taken into account that Newfoundland would benefit to a great degree by virtue of reductions in the Canadian agreement but that the principal reason which militated against a special arrangement with Newfoundland was the fact that it appeared to be impossible to contemplate any reduction in our duty at this time on fish of the [Page 67] codfish family. On frozen blueberries, Mr. Sayre stated, there was a pretty good possibility of some reduction in the Canadian agreement which would, as stated above, automatically be extended to Newfoundland.
Mr. Trentham said that he understood our position in this matter in respect to the difficulties in reducing the duty on codfish and he added that Newfoundland would, of course, be very grateful for any benefits which would accrue to her from our trade agreements with other countries, especially with Canada. He said that a reduction on frozen blueberries would be of great benefit to them.
Mr. Trentham asked if there was anything which Newfoundland could do to show her gratitude. Mr. Sayre replied that naturally any reductions in favor of American products which Newfoundland might care to make autonomously would be of great assistance to us in popularizing our trade agreement program in the United States. Mr. Trentham then said that in these circumstances he would recommend to his associates in the Commission that dried fruits be placed on the free list in Newfoundland as from January 1 next; he added that he was certain that his associates on the Commission would concur in his recommendation.
- Assistant Secretary of State.↩
- See pp. 18 ff.↩
- See vol. i, pp. 390 ff.↩