632.6231/264: Telegram

The Acting Secretary of State to the Ambassador in Brazil (Caffery)

72. Your 150, November 10, 8 p.m. Following is literal translation of assurance given in German Embassy note of August 12, 193638 which was basis of Treasury Decision of August 14, 1936 [Page 347] modifying countervailing duty order against German goods, which you may show the Minister for his strictly confidential information.

“The German Government has taken measures to the effect that neither the use of the scrip and bond procedure will be permitted nor will the payment of a public or private premium or subsidy or the use of other German currency than Reichsmarks freely convertible into foreign currency or Reichsmarks freely utilizable in Germany be allowed in connection with the direct or indirect exportation of dutiable goods from Germany to the United States of America, in so far as such exportation takes place or may take place on the basis of agreements which were concluded on or after August 3, 1936.”

The note embodying the foregoing assurance has never been made public, but it was the basis of and is very closely paraphrased in the Treasury Decision of August 14, 1936.

Welles