662.9131/19
The Secretary of State to the Chargé in Iran (Merriam)
Sir: Reference is made to Mr. Hornibrook’s despatch No. 737, dated March 6, 1936, regarding apparent discrimination against American trade arising from the Convention for the Regulation of Payments between Germany and Iran which was signed on October 15, 1935. It has been noted that protests in this connection have been made to the Iranian Government by the Belgian, British, Czechoslovak and French legations on behalf of their respective governments and that the Legation suggests that similar action be taken by this Government.
According to the terms of the convention in question the Department understands that importers of goods from Germany receive import permits without being obliged to produce export certificates, such as are required in the case of imports from the United States. This would appear to place German goods in a more favored position than those of the United States and hence to constitute discrimination against American trade contrary to the terms of the Provisional Agreement with reference to Commercial Relations between the United States and Iran, effected by the exchange of notes of May 14, 1928.40
Unless you perceive some compelling reason to the contrary, therefore, you are authorized to communicate these views in writing to the Iranian Government and state that this Government trusts the Iranian Government will give this matter its sympathetic consideration and will at the earliest opportunity take appropriate measures to remove the present apparent discrimination against imports from the United States. The Department is of the opinion that a note drafted along these lines is preferable to the rather detailed draft submitted with your despatch under acknowledgement.
In taking action on this matter you will, of course, give due consideration to such results as may have attended the protests lodged by [Page 399] the Belgian, British, Czechoslovak and French legations. This is also a matter concerning which the Department expects that you will keep it fully advised.
There is enclosed for your information a copy of a memorandum41 on this subject prepared in the Division of Trade Agreements.
Very truly yours,
- Foreign Relations, 1928, vol. iii, p. 724.↩
- Not printed.↩