611.6531/440: Telegram

The Chargé in Italy (Reed) to the Secretary of State

374. Department’s telegram No. 105, October 25, 3 p.m. The Italian reply has now been received, the full text and translation of which will be sent by the next pouch.27

In general the reply constitutes a rejection of the Department’s request but points out that in certain cases increased purchases of American goods during the first 9 months of the year have resulted [Page 581] in imports in excess of the annual quotas assigned to American products. After explaining the Italian position and giving the specific information requested in regard to the status of certain quotas the note concludes that

“The Royal Ministry of Foreign Affairs expresses the opinion that should it not be possible to find a basis for agreement as regards a satisfactory criterion of interpretation of the reason contained in article VIII for the determination of quotas, it would have to consider the advisability of revising the modus vivendi of December 16, 1937 to the end that the regulations under discussion would, in the application of the agreement, permit consideration of the special exigencies which might arise with respect to certain branches of Italian economy.”

  1. Enclosed with despatch No. 1202, December 16, from the Chargé in Italy; neither printed.