611.6531/483: Telegram
The Ambassador in Italy (Phillips) to the Secretary of State
[Received February 8—7:55 a.m.]
86. My despatch No. 1584, October 11, 1939.38 Following is translation of note verbale dated February 5 from the Foreign Office:
“The Royal Ministry of Foreign Affairs presents its compliments to the Embassy of the United States of America and referring to its note verbale of October 7 last38a to which no reply has been received states as follows:
- (1)
- The commercial balance between the United States of America and Italy is at a rate constantly unfavorable to the latter with a passive balance which in 1938 amounted to 508,391 lire.
- (2)
- The modus vivendi of December 16, 1937, was signed with the understanding that shortly thereafter negotiations would follow for the conclusion of a commercial accord which would provide for tariff modifications. Such negotiations have not yet been begun while the application of supplementary duties on certain Italian products is restricting the exportation thereof to the United States influencing unfavorably Italy’s already passive trade balance.
- (3)
- It now appears that the divergence of interpretation between the Government of the United States of America and the Royal Government concerning article 8 of the modus vivendi cannot be eliminated in the future.
In view of the foregoing considerations the Royal Ministry of Foreign Affairs has the honor again to inform the Embassy of the United States of America that the Italian Government would be disposed to initiate negotiations looking to a revision of the modus vivendi of December 16, 1937, and will therefore be pleased to know whether the Government of the United States of America concurs in the matter.”