Office of the Historian

611.3931/67

The Chargé in the Dominican Republic (Atwood) to the Secretary of State

No. 3665
Ciudad Trujillo, December 8, 1936.
[Received December 12.]

Sir: Referring to the Legation’s despatch No. 3638 of November 25, 1936, and previous correspondence, in relation to the threatened denial of most-favored-nation treatment to certain American products similar to those identified by brand or trade names in the Franco-Dominican Trade Agreement, I have the honor to enclose a copy and translation of note No. 985 of December 7, 1936, received today from the Secretary of State for Foreign Affairs stating that the Department of State for the Treasury has issued the pertinent instructions in order that, by virtue of the stipulations of the American-Dominican Modus Vivendi of 1924, all the concessions made by the Dominican Republic to France under the Franco-Dominican Commercial Convention of September 4, 1936, shall be extended to the commerce of the United States.

The Department will observe that the note states that “the Franco-Dominican Commercial Convention makes exemptions and reductions, in so far as concerns internal revenue taxes, to French products whose brands are expressly enumerated for such purpose.” It continues: “The Department of State for the Treasury has issued, as a consequence, the pertinent instructions in order that such exemptions and reductions shall be extended to the commerce of the United States of America.” The note ends by saying: “But, when these exemptions and reductions have not been expressly made by the Convention to similar French products, they are not extended to those, nor will they likewise be (extended) to similar products of the United States of America.”

This is taken to mean that, as pointed out at [on] page 2 of my despatch No. 3617 of November 12, 1936, reporting a conversation with the Secretary of State for Foreign Affairs on the subject, the Dominican Treasury Department is continuing to enforce strictly the provisions of the Franco-Dominican Trade Agreement as regards the preferential treatment to be given specified brands or makes of certain French products and that any French product entering the [Page 428] Republic which does not carry a brand or trade name exactly as specified in the agreement is being charged the full rate of internal revenue tax on the product. It would appear, therefore, that any American product that is not similar to an article specified in the Franco-Dominican trade agreement by a brand or trade name would not receive any reduction of, or exemption from, internal revenue taxes when entering the Dominican Republic.

Respectfully yours,

Franklin B. Atwood
[Enclosure—Translation]

The Dominican Secretary of State for Foreign Affairs (Bonetti Burgos) to the American Chargé (Atwood)

No. 985
Ciudad Trujillo, December 7, 1936.

I have the honor to refer to notes No. 259 of October 10, signed by His Excellency, Minister Schoenfeld, and No. 267, of November 25 last,21a signed by you, in which it was expressed that the Government of the United States of America expects that, in accordance with the Modus Vivendi of September 25, 1924, the products of the United States similar in nature to the products of the French firms mentioned in the Franco-Dominican Commercial Convention recently signed in this capital will receive equal treatment to the said French products as regards the deduction of, or exemption from, internal revenue taxes.

In reply, I have to advise you that the Department of State for the Treasury has issued the pertinent instructions in order that, by virtue of the stipulations of the Modus Vivendi concluded between the Dominican Republic and the United States of America, all the concessions that the Dominican Republic has made to France by means of the Franco-Dominican Convention of September 4, 1936, shall be extended to the commerce of the United States of America.

As you will note, the Franco-Dominican Commercial Convention makes exemptions and reductions, in so far as concerns internal revenue taxes, to French products whose brands are expressly enumerated for such purpose. The Department of State for the Treasury has issued, as a consequence, the pertinent instructions in order that such exemptions and reductions shall be extended to the commerce of the United States of America. But, when these exemptions and reductions have not been expressly made by the Convention to similar French products, they are not extended to those, nor will they likewise be (extended) to similar products of the United States of America.

I avail myself [etc.]

E. Bonetti Burgos
  1. Neither printed.↩