611.653/80: Telegram
The Ambassador in Italy (Phillips) to the Secretary of State
[Received July 16—8:04 a.m.]
177. Embassy’s telegram No. 116, May 23, 4 p.m. The following communication has just been received from the Ministry of Foreign Affairs with further reference to the treatment of Italian products in New York:
“In March the firm Michele Perego di Resate Brianza was informed by cable by its New York representative Signor Darista of the firm Trinacria Importing Company that the customs authorities of that town had assessed an anti-dumping surtax upon cotton bed covers and carpets which had been shipped and requested payment of the invoices as a guaranty, in addition to the duty, pending the completion of an investigation which had been ordered under the imputation that the invoiced prices were too low.
A similar communication has been received from the Podesta of Chieri pointing out that the industries of that town were seriously hurt by the said measure.
Information from New York confirms the ruling adopted with regard to the above-named firm and indicates that the customs authorities of that town had claimed the guaranty or threatened that it would also be applied to other cotton fabrics as specified in note verbale of May 20.19
[Page 569]The spreading of such news among the national exporters has caused a notable standstill in shipments which annually total approximately 50 million lire.
The Central Customs Department of Washington must be aware of the prejudice caused Italian exports by the grievous measures and also that the charge of dumping brought against said products is groundless. The American customs authorities have also knowledge of other concrete cases showing recurrent applications of the anti-dumping law which is manifest in the claim of guaranty deposits pending threatened investigations pertaining to typically Italian export products.”