611.573 Whale Oil/35
Memorandum of a Conversation Between the Assistant Secretary of State (Sayre), the Assistant Chief of the Division of Western European Affairs (Hickerson), and the Norwegian Minister (Morgenstierne)
The Norwegian Minister came in at 3 o’clock this afternoon. He stated that he wished to inquire respecting the prospects of legislation at the coming session of Congress to repeal the excise tax on whale oil. He referred with gratitude to the efforts which the President, the Secretary and members of the Department had made last session in behalf of such legislation and stated that he was hopeful that our efforts would be more successful at the coming session. Mr. Sayre stated that he thought that it would be impossible to express an opinion as to the prospects of such legislation at this time. He said that it would be necessary to confer with Administration leaders in the Senate and the House of Representatives and to get their views. He called attention, however, to the fact that everyone hopes for a short session of Congress and mentioned the fact that this might militate against the passage of such legislation, or indeed any legislation outside of that absolutely essential.
The Minister referred to the fact that it might be desirable for the Tonry Rill to be amended in such a way as to make it clear that the cancellation of the excise tax would apply only to whale oil imported for industrial purposes. Mr. Sayre stated that this might have a good psychological effect. The Minister said that the Norwegian-American Chamber of Commerce would again interest itself in behalf of such legislation. Mr. Sayre promised to let the Minister know as soon as possible after the opening of Congress as to the prospects of such legislation.
The Minister said that if this excise tax on whale oil could not be repealed fairly early in the session it would have an unfortunate effect on our whole trade relations. He said that it would then be necessary for Norway to sell virtually all of this year’s catch in Germany and that they would have to buy German goods in an equivalent amount; this, he added, would tend to divert trade from the United States to Germany.