671.116/54: Telegram

The Minister in Rumania (Owsley) to the Secretary of State

4. Department’s telegram No. 2, March 22, 5 p.m. I presented note to the Minister for Foreign Affairs March 14th. He promised review of Department of Commerce decision and early reply. Speaking personally he concurred that 1930 exchange of notes remains in force. Ensuing half an hour conversation left me moderately optimistic.

Suspension still obtains but imports of American merchandise are being made under following conditions:

1.
On import permits previously granted;
2.
If no import permit is required; items of particular interest to American trade being motor vehicles, spare parts, insecticides, tractors, and agricultural machinery;
3.
Indirectly, as foreign nationalized merchandise; certain motor vehicles, cotton, and moving picture films being most important items;
4.
On compensation basis; other motor vehicles and miscellaneous articles being thus imported. Of interest are two recent compensation shipments of corn valued at $300,000; others reported prohibited.

Oil well supplies are the most important item affected, no permits having been granted since March 1st. However, oil companies believe they can solve problem directly.

Thus, although suspension adversely affects large majority of articles of American manufacture normally imported into Rumania, importers of most important items (accounting for more than half value of total) are still able to import under the increasingly complicated practices evolved during last 2 years.

Written report of interview went forward today.9 Analysis of trading situation is under preparation.

Owsley
  1. Not printed.