611.48A6 Liquor/13: Telegram
The Secretary of State to the Consul at Capetown (De Courcy)
Your July 20, 3 p.m. For your information and such use as you may deem appropriate in answering the charges of discrimination against American goods the following summarizes the information which the Department has been able to acquire concerning the closing of the South African Wine Growers’ Association Office in New York.
There appears to be no record in the Department of any complaints by the South African Wine Growers’ Association against regulations making it impossible to import South African wine and brandy in the United States. In 1934 attempts were made by the South African exporters to increase quota allotments, and at that time a permit to cover a shipment of South African wines was refused because the [Page 857] application was not made in time. This appears to be the only case of a complaint on record.
Inquiries have been addressed to the Federal Alcohol Administration and the National Association of Alcoholic Beverage Importers to determine whether they are aware of the situation alleged to exist by the South African Wine Growers’ Association. Both groups have replied in the negative.
The Secretary of the Importers’ Association, of which the South African group is a member, states he knows of no case which might have justifiably been made the cause for any complaint, and that there has been no discrimination against South African wine imports, which are subject to the same regulations as similar imports from other countries. In fact, the South African brandy will benefit through the most-favored-nation clause from the reductions on import duties on brandy brought about through the recent trade agreement with France.3 In reply to an inquiry addressed by the Secretary of the Importers’ Association the Office of the South African Wine Growers’ in New York has replied that the reason for the closing of its office is purely a question of business judgment. It admits that Federal regulations apply equally to all countries and do not discriminate against South African wines. The Association has stated that it is cabling its South African principals to that effect.
It appears probable that the Wine Growers’ Association is closing its New York Office through inability to market their product in the United States, rather than because of difficulties experienced with Government regulations or restrictions. Their product is not well known in this country and is directly competitive with similar but better-known brands from other nations. It may be that disappointment over their inability to sell their goods in this country has for local reasons at home caused them to make this charge as an excuse.
Keep Department fully and promptly informed.
- See vol. ii, pp. 85 ff. For text of the agreement, signed May 6, 1936, see Department of State Executive Agreement Series No. 146, or 53 Stat. 2236.↩