611.573 Whale Oil/9
Memorandum by the Economic Adviser (Feis)
Mr. Sayre being away, the Norwegian Minister came in to inquire in regard to reports that had reached his Government to the effect that we were going to withhold tariff concessions from a large group of countries, making up what the press had called a “black list”. The story that is circulated is apparently to the effect that this would affect something like thirty countries.
[Page 622]I informed him that the version of the question distorted it in many aspects, and that the situation in brief was that we were confronted by the question of whether, considering the development of the commercial policies of various other countries of the world, we could continue our policy of single tariff rate for all countries, or somewhat amend it in respect to certain countries that were discriminating against American trade and putting their whole commercial policy on a bargaining basis. I explained that nothing like thirty countries were in question, and nothing resembling a black list idea is in contemplation; that in the event that the concessions were withheld from any country, it would be regarded as an occasion for negotiation for these concessions since the other countries were insisting on negotiating, in regard to the treatment given to American trade. All of this I explained to him was under consideration, and no final decision had been reached. In response to his inquiry I indicated indirectly that the question of extension to Norway had not arisen.
The conversation moved from this to the matter of a possible commercial agreement between this country and Norway. He again explained that the delay was due to the fact that the Norwegian Government felt that negotiation should be placed on a status quo ante basis, that is, as before the passage of the tax on whale oil which had completely closed the American market to that Norwegian product. He stated that it was the best judgment of his Government that a reduction of 50 percent of this duty would not be sufficient. I explained the political difficulties that would be met in any attempt to get a revision of the law imposing this tax.
The Minister asked whether it might not be feasible to put through a limited trade agreement dealing with whale oil on the one hand and one American commodity on the other hand. I again called attention to the fact that the President’s power to revise the whale oil duty was limited to 50 percent and that furthermore even for such a limited agreement we would have to go through the whole procedure of public hearings and the rest, which would consume as much time as would the attempt to negotiate a more comprehensive commercial agreement. With this he was in accord.
In the interchange of views that followed, in which I inquired as to what type of market Norway might afford to American agricultural products, the thought occurred to me that a way around the difficulty might conceivably be found (a) by arranging through Mr. Peek’s Office6 or otherwise for some sort of direct interchange of whale oil for extra purchases of American agricultural products. I explained [Page 623] that this was just a hazy idea, that I did not know how it could be done, but that it might be something to which the Department of Agriculture might give some thought. He was interested and asked (b) whether it was not conceivable that if the American agricultural interests could be promised directly a defined market in Norway for certain additional agricultural sales, they might not support a bill for revising the tax on whale oil. This I said was much more doubtful, but it might also interest the Department of Agriculture to explore the idea.
We both fully understood that we had been merely throwing out personal conjectures that in no way carried official commitments, but I promised to refer the idea to the Department of Agriculture and stated that if they on examining this subject could work out any feasible plan I would put the Department of Agriculture directly in touch with him for purposes of discussing it.
- George N. Peek was special adviser to the President on foreign trade, 1934–35.↩