The Ambassador in Germany (Dodd) to the German Minister for Foreign Affairs (Von Neurath)8
Excellency: Pursuant to instructions from the Secretary of State,9 I have the honor to invite Your Excellency’s attention to the following matter:
Note Verbale No. III A 3174, of November 26, 1935, from the Ministry for Foreign Affairs,10 in reply to a request made on behalf of the United States Treasury Department that facilities be afforded for obtaining information deemed essential to the proper appraisement and assessment of duties on merchandise entering the United States from Germany, was duly transmitted by the Embassy to the Department of State and through the latter to the Treasury Department of the United States.
The Department of State has now informed the Embassy that the Treasury Department has acknowledged the receipt of the Note Verb-ale of the German Foreign Office and has noted the apparent position [Page 211] of the German authorities in refusing information concerning the operation of the scrip procedure on the ground that such procedure in no case results in the receipt by the German exporter of a total payment for an export transaction in excess of the foreign or export value of the goods involved. In this connection the Treasury Department has stated that a principal reason for its interest in the operation of the scrip procedure with reference to German exports to the United States is the responsibility of the Treasury under Section 303 of the United States Tariff Act of 1930.11
The State Department has further informed the Embassy that in a communication dated December 6, 1935,12 the German Ambassador at Washington, on instructions of his Government, gave formal confirmation that the funds built up under the German law, approved June 28, 1935, imposing a levy on German industry, have not been used to promote exports to the United States and will not be used in future for that purpose.
In taking cognizance of this statement of the German Ambassador, the Treasury Department points out that it is under the duty of considering whether any of the other methods by which the German Government encourages exports are in use with respect to exports to the United States and whether the use of such methods constitutes the bestowal of a bounty or grant within the meaning of Section 303 of the Tariff Act of 1930, and places upon the Treasury Department a mandatory duty to impose countervailing duties under that section. The Treasury Department’s representatives in Germany having so far been unable to obtain satisfactory information from the German Government or otherwise, that Department has requested the Secretary of State to obtain from the German Government definite information on the subject.
The Treasury Department has summarized as follows its present
understanding of the procedures used to promote exports, and the points
which should be clarified:
Both in his note of December 6, 1935, and on other appropriate occasions, the German Ambassador at Washington has not failed to place the staff of the Embassy at the disposal of the competent American authorities for information regarding the use of registered marks and similar procedures, in connection with the imports of goods from Germany into the United States. However, in view of the Treasury’s request that definite information be obtained from the German Government clarifying the points summarized above, and in view of the citation by the Treasury Department of its responsibilities under Section 303 of the Tariff Act of 1930, I have been instructed by the Secretary of State formally to present the foregoing statement of the Treasury’s position and its request for definite information.
In bringing the foregoing to Your Excellency’s attention, I have been instructed to request that the German Government be so good as to furnish as definite reply as possible to the several points submitted.
I avail myself [etc.]