611.5431/276

Memorandum by the Chief of the Division of Trade Agreements (Grady)

I saw the President this morning by appointment and secured his approval of the attached schedule on watches.31 This schedule calls for an average reduction of 33.8 percent as against the 29.8 percent provided in our last offer to the Swiss. The President approved this reduction because of the arrangements with the Swiss by which smuggling will be greatly reduced, if not eliminated, and of the provision for the reduction in the duty on parts, which will be helpful to the domestic manufacturers. He urged that, if possible, we get, after the agreement is announced, some statement from watch interests approving the arrangement regarding the smuggling provisions and reductions of duties on watches in the Swiss agreement.

Henry F. Grady
  1. Not printed.