711.652/140
Memorandum of Conversation, by Mr. Melvin L. Leap of the Treaty Division
| Participants: | Signor Fulvio de Suvich, Ambassador of Italy, |
| Mr. Sayre, Mr. Dunn, Mr. Tittman and Mr. Leap. |
The Italian Ambassador called on Mr. Sayre at 12 o’clock noon today at his own request. He said he had received a telegram from his Government asking him to inquire at the State Department as to whether there was anything that could be done to expedite signature of the temporary arrangement which had been proposed by this Government for governing commercial relations between the two countries during the interim between the date on which the treaty of 1871 expires, [Page 489] i. e., December 15, 1937, and the date on which the proposed new treaty comes into force. He added that unless the temporary arrangement were signed on December 15 there would be a period during which commercial relations would not be based upon treaty provisions. Mr. Sayre said a telegram covering certain points which remained to be settled before the temporary arrangement could be signed had been prepared and was ready for transmission to our Embassy in Rome. He said these points arose in connection with the Précis of interpretation of certain provisions of Article VIII, and he felt that a complete understanding between the two Governments in respect of that article should be reached before the temporary arrangement was signed. Mr. Sayre indicated that the differences between the two Governments in respect of the Précis were such that they probably could be worked out without much difficulty. He said the two major points at issue were (1) the question of what is meant by a “representative period” and (2) the question of what constitutes most-favored-nation treatment in respect of rates of exchanges. He mentioned several other minor differences but said he thought there would be no disagreement on these. Mr. Sayre expressed the hope that the Italian Foreign Office would find itself in agreement with our views on the two major points and that the temporary arrangement could be signed on December 15.
The Ambassador said it was his understanding that if the temporary arrangement were not signed on December 15th, it would be necessary for the President to issue a proclamation withholding generalization of customs duties to imports from Italy and he expressed considerable concern about this. Mr. Sayre reiterated that he was hopeful the agreement could be signed on December 15, but indicated rather clearly that if it were not signed on that date this Government would hesitate to take any action during the few days following which would alter the present status of trade relations. He then referred to the friendly relations between the two countries and went on to point out that the Department fully realized the difficulties involved in reaching an agreement within the short time that remains.
The Italian Ambassador expressed gratification over this statement and said he would cable his Government at once the substance of what Mr. Sayre had told him and say that every effort was being made by this Government to have the temporary arrangement signed before the old treaty expires. Mr. Sayre said he would have the telegram transmitted immediately and would also send a flash to the Embassy advising of its coming. The Italian Ambassador seemed to be fully satisfied with the statements made by Mr. Sayre.