654.113 Automobiles/24: Telegram

The Secretary of State to the Minister in Switzerland (Harrison)

70. Despatch 65 of October 28 [22]. The Department considers that the words “rules, formalities and charges imposed in connection with the clearing of goods through the customs” in paragraph 1, and the whole of paragraphs 2 and 4, of Article X are definitely applicable to this case. In particular, it cannot admit Hausermann’s contention that the above quoted clause applies only to formalities and charges imposed “at the time of customs clearance.” The Department regards the Swiss position as being inconsistent with not only the broad purposes of the most-favored-nation clause, but the specific language of the agreement as well.

The Department also considered Article X applicable to the tractor case (despatch 4513 of August 8, 193619) but saw no purpose in then pressing its interpretation as satisfaction had already been granted the American interests involved. While desiring not to prejudice the efforts already made by you to settle the present case, the Department wishes you to make its views clear to the competent Swiss authorities in whatever manner you deem most advisable. Should the reply to your letter of October 12 to Hotz19 be unfavorable you should urgently request reconsideration on the basis of the Department’s opinion as to the applicability of Article X.

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