851.51/2–946: Telegram

The Secretary of State to the Ambassador in France (Caffery)


777. 1. Dept has noted with great interest views expressed in your 647 Feb 9. They will be helpful in discussions with other interested agencies.

2. The nature of the matters which might be included under heading A of the agenda (Dept’s 573 Feb. 4) fall within two general categories, namely: (1) a treaty of friendship, commerce and navigation and (2) special problems of U.S. companies in France.

3. As to the treaty of friendship, et cetera, it is believed that the existing treaties with France are inadequate to meet present-day economic and commercial problems and that a modern treaty should be negotiated. Such a treaty should stand on its own bottom and it should not be necessary to include it as part of the general negotiations. However, you may consider it desirable, as part of such negotiation, to obtain French agreement to negotiate a treaty of friendship. Dept will welcome your comments.

4. As to special problems of U.S. companies, it is believed these will be adequately covered in discussions already under way, namely those in regard to double taxation and equality of treatment for American property losses. If these separate discussions are not concluded satisfactorily prior to the completion of general negotiations, Dept feels they should be brought into those negotiations. If there are any other problems affecting U.S. business interests in France which Embassy feels should be discussed, they also can be included. Dept. will welcome Embassy’s comments.