611.60131/62: Telegram

The Chargé in Estonia (Leonard) to the Secretary of State

[5.] In reply to Department’s telegram 3, April 23, 6 p.m., tentative suggestions as follows:

Slight possibility removal of present 10 senti per kilo duty on cotton of which 70% comes from United States representing $1,300,000 value in 1936 being 60% of all imports from the United States;
Consolidation of sulphur on the free list;
Twenty-five percent reduction on automobiles of American horse power cars to equalize lower duty on small cars specified in British treaty, Germany and England principal competitors in an $800,000 market;
Duty reduction automobile parts total market $30,000; United States share nearly half, chief competitors Germany and England;
Removal of the 1½ senti duty per kilo on rosin, United States furnishing $25,000 being over 80%, Russia remainder;
Automobile tires and tubes, United States furnishing only 12% in a $23,000 market, Germany and England principal competitors;
Typewriters reduction from 3 crowns per kilo to possibly half in an $11,000 market, share of the United States being about 40%, Germany and England principal competitors, and
Internal combustion engines now largely imported from Germany but formerly from the United States. Requests for reductions on gasoline, kerosene and lubricating oils would seem to be futile in view of Shell arrangement with the Standard Oil Company in Estonia and desire to protect the local shale oil industry. Chief obstacle to import of American goods is not the customs tariff but Estonian import license system which tends to equalize trade bilaterally. Supplementary telegram and despatch will be sent after return of Wirgo from Finland May 1st, when I will also take up with the Foreign Office renewal of commercial treaty expiring on May 22nd.