611.5731/125

Memorandum by the Chief of the Division of Trade Agreements (Grady)

The Norwegian Minister called by appointment to say that he is leaving shortly for his holiday and to repeat the hope he has expressed on a number of occasions that the Department would do all in its power to assist in the passage of the bill to repeal the excise-import tax on whale oil. He appreciated the efforts the Secretary and those in the Department interested have made in this matter, but he wished to stress the fact that it would add somewhat to the difficulties of a trade agreement if the legislation did not go through.

He intimated that if it did not go through, Norway would in any case wish to make a trade agreement with us and accept the fifty percent reduction which we are able to make in the tax but that there might be some difficulties in connection with our general provisions as a result of the compensation agreement which they must renew with Germany10 as a result of this tax being in effect and which does in fact divert trade from the United States to Germany.

The Minister indicated that when Congress adjourns, he will communicate with us through his Chargé here and ask that public announcement of intention to negotiate a trade agreement with Norway be made by the United States.

Henry F. Grady
  1. Signed September 6, 1934, and modified December 31, 1934, and March 19, 1935; League of Nations Treaty Series, vol. clxi, pp. 187, 190, and 192.