671.116/52
Memorandum by the Chief of the Division of Near Eastern Affairs (Murray)
The Rumanian Minister4 called me by telephone yesterday in connection with the decision of the Rumanian Department of Industry [Page 672] and Commerce, of which we were informed in the attached telegram No. 3 of March 2, 4 p.m., from our Legation at Bucharest,5 to the effect that “further authorizations for the importation of American merchandise into Rumania have been suspended pending the conclusion of an agreement safeguarding the interests of the two parties.”
In discussing this matter earlier with Mr. Florescu, the Rumanian Counselor, I had pointed out our surprise at the action of the Rumanian authorities and particularly at the failure of the Rumanian Government to give us thirty days’ notice of the termination of our provisional commercial agreement of 1930,6 which is prescribed in the agreement itself.
The Minister stated that he felt his Government was remiss in the “form of the action” which it had taken; namely, in not having given us due notification of the termination of the above agreement. He said he expected to telegraph his Government pointing out this fact. As to the “fact” of the case he said he thought the Rumanian action was based on the same reasoning as that of Mr. Peek7 of the Export-Import Bank; namely, that a balance of trade had to be sought by given countries with all other countries with which they trade in order to protect their exchange resources.
As far as Rumania is concerned, the Minister stated that it was a case of force majeure because of the exchange situation. He said there had actually been a recent panic on the Bucharest stock exchange in view of a report that there was to be a reduction in the gold content of the leu. This, he said, could not be done under present laws and would in any case not be done. I understand that the Minister telegraphed to his Government yesterday pointing out the impropriety of this action in suspending imports from the United States in the absence of any proper denunciation of its present provisional commercial agreement with this country.
- Charles A. Davila.↩
- Supra.↩
- For text of the agreement signed at Bucharest on August 20, 1930, see Foreign Relations, 1930, vol. iii, p. 799.↩
- George N. Peek, President of the Export-Import Bank.↩