611.47H31/86: Telegram
The Acting Secretary of State to the Consul General at Wellington (Bucklin)
Your December 15, 6 p.m. See Department’s instruction of January 18 [28] and telegram of October 11, 1935, wherein it was indicated [Page 84] that New Zealand would receive most-favored-nation treatment so long as the Government of New Zealand does not practice discrimination against the commerce of the United States. You may repeat that assurance, pointing out the possible benefits which may accrue to New Zealand from the concessions made on dairy products, particularly cream and cheddar cheese. No concession was made on butter, but the reduction of the duty on cream and consequent probable increased imports of cream from Canada might conceivably affect favorably New Zealand butter exports to Canada. A copy of the agreement was forwarded to you on November 30.
You may state that your Government would like very much to continue to accord unconditional most-favored-nation treatment to New Zealand, and is therefore concerned, with reference to the carrying out of the provisions of the Trade Agreements Act, about the disadvantages to American trade resulting from the reductions given by New Zealand to Belgium in a trade agreement and generalized by subsequent order in council to 13 other countries but not to the United States.
For your confidential information, to be repeated with the utmost caution, there was doubt whether New Zealand would be among those countries to be given most-favored-nation treatment. Their Belgian agreement and subsequent order in council constitute in our opinion first degree discrimination. We adopted the policy, however, of generalizing concessions where the discriminations were not now particularly harmful, being free at any time to withdraw generalization if the discriminations should multiply or become injurious.
We feel, therefore, that the time is opportune for an arrangement with New Zealand providing for most-favored-foreign-nation treatment. You may therefore inquire whether the New Zealand Government would be disposed to conclude such a simple agreement, thus positively assuring New Zealand continued most-favored-nation treatment by the United States.
Please mail copy with explanation to Moffat for his information.