The Secretary of State to the Ambassador in Italy ( Phillips )
52. Your 230, June 21, 7 p.m.,28 and Department’s 42, May 24, 7 p.m. As the result of arrangement between the Treasury and the Italian Embassy, the Treasury has agreed to send the Supervising Treasury Attaché at Paris29 to Rome for the purpose of obtaining fullest information and discussing matters relative to the imposition of countervailing duties on certain imports from Italy. It is understood that Italian officials are fully disposed to provide full information as desired by the Treasury.
The Treasury is suspending decision pending the outcome of these discussions. However, as regards silk goods, there is a special situation. The Treasury is convinced that according to the information already in their possession they are required under the law to give the 30 days notice of imposition of the countervailing duty on silk goods. However, they have Consented, as a result of special urging by us, to see whether these same discussions might not also produce some solution in regard to silk goods also. They have informed us that they are agreeable to having their special representative discuss the silk goods question with the Italian Government. They say, however, that unless the Treasury representative convinces them, the Treasury Department, that their present findings are unfounded, or alternatively, in the event that their opinion remains unchanged, the Italian Government takes steps to remedy the present procedures which led the Treasury to find that countervailing duties must be applied, they will have to publish an order on July 1 giving 30 days notice of the imposition of countervailing duties on silk goods. In other words, it is to be clearly understood that only new information which leads the Treasury Department, before July 1, to change its present judgment or modification of present practices can lead to an avoidance of the application30 of countervailing duties to silk goods on that day. Please see that the Italian Government gets as clear as possible a picture of the situation, that it appreciates the special effort we have made in the matter, and that all the necessary appointments for the Treasury representative are promptly made.
Treasury informs us Wait and two assistants will arrive in Rome on June 25 ready to start conversations on June 26. Suggest Embassy telephone Wait in Paris and have his appointments arranged before his arrival.