611.653/62: Telegram
The Ambassador in Italy (Phillips) to the Secretary of State
[Received May 23—1:40 p.m.]
116. The Embassy has received the following communication from the Ministry of Foreign Affairs:
“During the month of April the customs officers of New York demanded deposit of guarantee to clear through the customs certain Italian manufactures, pending investigations to determine whether or not anti-dumping duties should be applied to imports of such articles. The manufactures affected by the measure are: table runners, bedspreads, carpets, wall velvets and panels, lace and crocheted gloves, and also it appears straw hats because of the extremely small quantity of cotton lace contained therein and it seems possible that cotton lace and stockings will be subjected to similar treatment.
These measures follow upon those which, as was then pointed out to the Embassy of the United States (see Embassy’s No. 551, December 28, 1936 and Department’s telegram No. 197, December 2914), were taken by the American customs authorities at the time of importation of such Italian products as cheese and tomatoes seriously jeopardize the possibilities of Italian exports to the United States since the exporter on the one hand refuses to make shipments in the absence of any definite idea as to the duties which will be applied to his products and the American importer on the other hand also refuses to place further orders because of the burden represented by the sum demanded as deposit until the value of the imported goods has been finally appraised.
It further appears that the investigations conducted in Italy by officials of the American Treasury concerning the production and sales prices not only of certain of the aforesaid products, namely, tomatoes and cheese but also of other articles exported from Italy to the United States such as cigarette papers, felts for hats, and rayon have caused such a feeling of uncertainty among industrial circles in Italy as to induce not a few exporters to relinquish the American market.
The situation which has thus been created with regard to Italian exports with the attendant aggravation of the long standing unfavorable balance in Italy’s trade with the United States cannot be regarded as normal or as in harmony with the principles which inspired [Page 566] the Italian Government in establishing import quotas for American products in application of the modus vivendi of December 16th last.
The Royal Government despite the unfavorable outcome of its previous requests in individual cases nevertheless continues to hope that an accurate understanding of the necessities of the Italian export trade to the United States will in the interest of the trade between the two countries suffice to remove the insurmountable obstacles today being placed in the way of the more important and traditional currents of its export trade”.
The note concludes with an intimation that unless the situation can be remedied some restrictive measures might have to be taken by the Italian Government and with the request that the foregoing information be conveyed to the American Government.
In acknowledging this note the Embassy has requested information concerning specific cases complained of.
- Neither printed; data within the parentheses apparently inserted by the Ambassador.↩