611.6531/428: Telegram
The Ambassador in Italy ( Phillips ) to the Secretary of State
[Received September 2—9:20 a.m.]
224. My 193, August 3, 7 p.m. The Embassy has encountered difficulties in the determination of commodities which should be regarded as falling within the category of “considerable interest” in the allocation of quotas. Since the figures used are those of the Italian statistics which are in lire the rate of exchange at which the 1934 figures should be converted into dollars in order to meet the $25,000 minimum [Page 576] requirement obviously plays a role of great importance. The Embassy feels that the rate of exchange prevailing in 1934, namely, 11.68 lire to the dollar should be the rate employed. The Italian authorities on the other hand maintain that the conversion should be at the current rate of exchange, i. e. 19 lire to the dollar. Such method of conversion tends to exclude from the category of goods of “considerable interest” many commodities which are important to us and the Embassy received frequent complaints on this point from local importers. If the Department perceives no objection the Embassy would like to urge upon the Italian authorities the acceptance of its view as a fair and equitable interpretation of the agreed definition of what constitutes a commodity of interest to us.
Advise Commerce.