660M.116/22
The Minister in Lithuania ( Lane ) to the Secretary of State
[Received May 14.]
Sir: With reference to my despatch No. 427 of March 2, 1937, from Riga, and to the Department’s instruction, in reply, to Riga, No. 103 of April 13, 1937 (File No. 660M.116/20), regarding the Lithuanian quota for importation of American automobiles, I have the honor to state that this morning I had a further conversation with the Lithuanian Minister for Foreign Affairs on this subject.
I expressed to Mr. Lozoraitis the gratification of my Government and of myself that the conversation which I had with the Minister on February 18, 1937, had apparently borne fruit: according to information which I had received from certain Lithuanian officials, American motor cars would be imported on the basis of our imports in the years prior to the establishment of import restrictions,—in other words, approximately 60 percent of Lithuanian automobile imports would come from the United States. I expressed the hope that the information which we had received from the above mentioned officials [Page 510] is correct.* The Minister stated that we had been correctly informed; that, following my talk on February 18th, he had taken up the subject of our conversation with the appropriate officials; and that we might rest assured that there would be no discrimination against American imports of automobiles or of other products from the United States.
Taking advantage of Mr. Lozoraitis’ use of the word “discrimination” I proceeded to define to him, in accordance with the fourth paragraph on Page 2 of the Department’s instruction No. 103,5 our interpretation of what constitutes discriminatory treatment of commerce of the United States.
In connection with the general subject of Lithuanian-American trade, I expressed the hope to the Minister that, along the lines of conversations which I had had with Government officials in Latvia and Estonia,6 the United States would be given equality of treatment and pointed out that we did not desire preferential consideration but merely an opportunity to compete on equal terms with European nations. I expressed the opinion that due to the tendency in certain countries in Europe to insist upon the bilateral balancing of trade, pressure has been brought upon Lithuania, Latvia and Estonia to purchase products from certain European countries under the threat of those countries discontinuing purchases from the respective Baltic States. I added that I had reason to believe that sometimes political pressure is brought to bear to induce the countries in this region to buy in a certain market. On the other hand, often-times an endeavor is made to obtain certain political concessions through the application of economic force by larger countries against smaller countries.†
I stated to Mr. Lozoraitis that it is of course obvious that the United States has no political ambitions whatever in Europe; consequently, there is no fear from us on that score. Furthermore, I added, in accordance with the principles of President Roosevelt’s foreign commercial policy we have been insisting, in the negotiation of trade agreements, on the recognition of a multi-angular trade policy as contrasted [Page 511] with the bilateral principle which is unfortunately in use between the Baltic States and certain European countries.
Mr. Lozoraitis expressed entire concurrence in my expression of views and added that Lithuania had been the last of the three Baltic countries to be forced to adopt the bilateral balancing of trade. He stated that the present import restrictions here have been considerably relaxed and expressed the hope that we would not have occasion for any complaint regarding discrimination against the United States.
The subject of Lithuanian butter exports to the United States was also discussed and is being reported in despatch No. 192 of today’s date.7
Respectfully yours,
- Mr. Kuykendall was informed on March 24, 1937, by Mr. Jonas Norkaitis, Director of the Economic Department of the Lithuanian Ministry for Foreign Affairs, and by Dr. Dovas Zaunius, Chairman of the Foreign Exchange Committee, that it had been determined on March 23, 1937, to permit the importation of American motor cars in the proportion of such imports in the years prior to the depression, which would mean that American motor cars would constitute 00 percent of the imports of automotive vehicles into Lithuania. [Footnote in the original.]↩
- The paragraph beginning “It may be added for your information”, p. 509.↩
- See pp. 259 ff.↩
- See Despatch No. 132 of March 18, 1937 from Legation at Tallinn and despatch No. 513 of April 17, 1937 from Legation at Riga (Pages 4 and 5 of enclosure No. 1 dealing with conversation with President Ulmanis on April 14, 1937). [Footnote in the original; despatches not printed.]↩
- Not printed.↩