611.6531/440a: Telegram
The Acting Secretary of State to the Ambassador in Italy (Phillips)
127. With reference to 1938 quotas for all products of the United States which have not been filled on or before December 31, 1938 by actual importation of the amount thereof, except quotas which remain unfilled because of a lack of demand from the trade, please request written assurances, unless you perceive objection, that the Italian Government will permit the unfilled portion of each to be filled during the first quarter or other convenient period early in 1939, such imports to be charged, of course, against the unused portions of the 1938 quotas.
The Embassy will note that the foregoing request covers broadly three classes of 1938 quotas which have not been filled by actual importation, namely, quotas which have not been filled by reason of (1) failure of the national or local Italian authorities to act favorably and effectively in behalf of importers either by refusal to issue permits or by administrative delays of any kind in connection with the issuance of permits, or by refusal to make available the necessary exchange, (2) goods in transit and (3) the issuance of permits too late for use in the usual course of business before December 31, 1938. As regards quotas falling under class (3), it would doubtless be convenient to many importers if the Italian authorities would cause the 1938 permits to be made valid for use during the first quarter of 1939 rather than require the issuance of new permits and you are requested to ask that this be done in all cases where importers desire it.
Unless you deem it inappropriate in the circumstances, you should say that the foregoing request, of course, is made without any change [Page 582] of the position of this Government respecting the general question discussed in No. 105 of October 25, 1938.
Please report by cable.