611.5431/259
Memorandum by Mr. David Williamson of the Division of Western European Affairs
Messrs. Nef and Amez-Droz came in this morning to discuss further the smuggling agreement. They submitted several counter-proposals to the American proposition submitted them on October 24.
After further discussion it was decided that they would submit for Mr. Stucki’s approval the following draft reservation to the protocol:
“The purpose of the Trade Agreement being to liberalize and increase trade, it is understood and agreed that if the United States of America should make effective any measure with respect to the prevention of smuggling which the Government of Switzerland should consider as restricting unduly or having the effect of restricting unduly the legitimate importation of or trade in Swiss watches or watch movements, the Government of the United States of America will give most sympathetic consideration to any written representations which the Swiss Government may make in respect thereto. If, within thirty days after the receipt of such representations, no satisfactory understanding or adjustment has been effected, the Swiss Government shall have the right Within fifteen days after the expiration of the aforesaid period of thirty days, to terminate this Protocol, or the Agreement in its entirety, on sixty days written notice.”
Mr. Nef said that if he had a favorable reply from Mr. Stucki on this question he would return to Washington to put the final touches on the smuggling protocol in conjunction with Mr. Murphy of Treasury.