many and the Ministry for Foreign Affairs is desirous that these changes should cause no disquietude in the United States as the decree is destined to adjust the situation and restore us to our previous relative tariff positions. STRAUS 651.113/134 Telegram The Ambassador in France (Straus) to the Acting Secretary of State PARIS, August 2, 1933-11 a. m. [Received August 2-8:30 a. m.] 3 353. My 342, July 26, 6 p. m. This morning in order to check up on the rumor that a 15% surtax was to be immediately applied to American products I telephoned Leger at the Foreign Office. He said that there is no immediate danger if he can control the situation; that the French Government is now in negotiation for a new commercial treaty with England; that the 15% had been applied to English products and that England was [protesting] which made the situation for France rather difficult; but that he had referred the matter to the Ministry of Commerce which was pressing it with the request that decision be deferred until a complete examination of the situation [could be made and the result of that examination could be submitted to the Ministry. Leger expressed] himself as hopeful that no decision would be reached before several weeks and that in any case if a decision were to be taken he would communicate with me. STRAUS 651.113/137 Telegram The Ambassador in France (Straus) to the Secretary of State PARIS, August 10, 1933-1 p. m. [Received August 10-10:50 a. m.] 366. Embassy's 343, July 27, noon. The decree promised appeared in the Journal Officiel of this morning's date. In checking over the list it appears that complete rectification has been accorded in all except two minor items in chemical group. Attention appropriate authorities is being called to these omissions. Corrected from confirmation copy received September 12. STRAUS 651.113/141 The French Ambassador (De Laboulaye) to the Secretary of State [Translation] AIDE-MÉMOIRE The Journal Officiel of the French Republic of August 10, 1933, published the text of a decree modifying the custom tariffs applicable to certain products of origin in the United States upon their entry into France. This modification, which could not be made sooner by the French Government due to the fact that the Ministers concerned were absent from Paris, has its origin in the law of July 12, 1933. The said law, which prescribes changes in the French custom tariff, had the following consequences, as regards American importations into France: 1. The French general tariff became applicable automatically to a certain number of American goods, through application of the principle whereby advantages authorized unilaterally through a given tariff law, become inoperative in France at the same time as the said law; 2. The only concessions from which the products of the United States could henceforth benefit upon their entry into France were the ones resulting from tables A and B annexed to the law and the decree of March 29, 1910. Now, the American articles mentioned in the decree of August 10, 1933, do not appear in said tables. Accordingly those articles, which had enjoyed the minimum and intermediate tariffs, fell under the general tariff. Only special measures taken by means of a decree could modify this new state of things. This is precisely the object of the decree of August 10, 1933, which authorizes the application to the American goods of the intermediate or minimum tariff. While informing His Excellency the Secretary of State of this modification, the Ambassador of France desires furthermore to call his attention to the fact that the French Government has seen fit up to the present time to postpone the application of the exchange surtax to American products entering France, in spite of the premium on exportation enjoyed by the American exporters due to the depreciation of the dollar, especially as regards automobiles and parts, machine tools, etc., and in spite of the repeated requests by numerous French industrialists for whom the American importations constitute serious competition. It goes without saying that this attitude of the French Government is no prediction of its future course and that it might be modified if the safeguarding of French national production rendered it necessary. Besides, the American Government has not contested the French Government's right to apply the surtax on importation. Nevertheless, up to the present the French Government, which risks finding itself in difficulties with foreign countries whose situation is analogous to that of the United States and to which the said surtax is already applied, has not felt that it should make use of this right so far as concerns American products. In so acting, it wished to view the question from the highest viewpoint and to give an effective proof of its desire to avoid, as far as possible, taking any step, even though justifiable, which might in one way or another complicate the work of economic adjustment undertaken by President Roosevelt. WASHINGTON, August 11, 1933. 651.113/143 The Ambassador in France (Straus) to the Secretary of State No. 186 PARIS, August 21, 1933. [Received August 30.] SIR: In view of the somewhat complicated nature of the developments described in my telegram No. 367 of August 12, 1 p.m., 1933, and reported as satisfactorily adjusted in my telegram No. 372 of August 17, 1 p.m., I now have the honor to report thereon in further detail for the Department's more complete understanding of the situation. By a law of August 6, 1933, published in the Journal Officiel of August 8 (a copy of which is enclosed),10 the customs duties on oilseeds and fruits embraced under tariff heading No. 88 were largely augmented. The law also provided for the modification by the pertinent Ministries of the duties on certain other specified tariff items, the increases to follow the ratio established for item No. 88. Pending application of the new rates on the articles other than those of No. 88, a temporary import quota was authorized as regards such items as are consolidated by agreement with other Governments. The alleged purpose of the tariff augmentation is to foster imports from the French colonies. The same number of the Journal Officiel carried a decree of the Ministry of Colonies, dated August 7 (see Enclosure No. 2), establishing the new maximum and minimum rates on the majority of the categories of the merchandise not included under heading No. 88. It was, however, specified in Article 2 of the decree that the new tariff on certain items listed therein, which are the object of consolidation with other countries, would not go into effect until further notice-presumably until negotiations with the countries concerned had been completed. Not printed. 10 None of the enclosures to this despatch are reprinted. A few days subsequent, on August 11, the Bulletin Douanier (See Enclosure No. 3) reprinted the revised maximum and minimum tariffs and in so doing in numerous instances indicated that the United States would receive the general tariff, although, as a matter of fact, previous to the law of August 6 the United States had benefited by the minimum or intermediary rates. As the Department is aware, this inequity was promptly drawn to the attention of the Ministry for Foreign Affairs by the Embassy. An attempt was made to correct the situation so far as concerns American products by the publication of a "rectification" in the Journal Officiel of August 15. Since, however, errors were made in redrafting the American rates, the Journal Officiel of August 17 carried a further "rectification" annulling the first one and reestablishing the treatment to which the United States is entitled under the provisions of the modus vivendi. The pertinent excerpts from the Journal Officiel of August 15 and 17 are appended hereto (enclosures No. 4 and No. 5). Only the latter excerpt need be taken into consideration. As may be observed from this last enclosure, in those instances where the new minimum tariff is higher than the old American intermediary rate, the new minimum rate is applied, and in the instances where the old American intermediary rate is higher than the new minimum rate, the old American intermediary rate remains unchanged. Where the United States previously benefited by the minimum duty, it continues to benefit by the new minimum tariff. From a conversation held between the Commercial Attaché and an officer of the Ministry of Commerce, it would not appear that any effort to discriminate against the United States was intended in the initial assignment to it of the general tariff rates on certain imports. It was explained that when tariff changes are made, the customs authorities have no other recourse than to apply the general tariff until they receive instructions directing them as to the rates which are properly applicable under the modus vivendi. This observation is worthy of note since analogous situations may arise in the future. The Commercial Attaché will obtain from the customs authorities either a confirmation of this statement or a further explanation of the reasons for the temporary application of the general tariff to products imported from the United States that previously enjoyed either the minimum or intermediary rates. Respectfully yours, For the Ambassador: ROBERT M. SCOTTEN First Secretary of Embassy INCREASE IN QUOTA FOR IMPORTATION OF FRENCH WINES AND €11.516 Wines/1 : Telegram The Acting Secretary of State to the Ambassador in France (Straus) 369. Discussions looking to an increase in the temporary wine quota to France were completed this morning with the French Commercial Attaché. An exchange of notes is awaiting signature. It has been agreed that we will double the present quota of 783,000 gallons, and in exchange for that the French have agreed to increase the quota for the next quarter on apples and pears to 200,000 quintals, and for salt pork products and hams to increase the quota for the next quarter by 500 quintals. Announcement of this agreement will probably be made public tomorrow morning. The Commercial Attaché proposed that in exchange for a yet further increase in the wine quota the French Government would be prepared to give an additional quota of 4,650 kilograms on patent leather, 40 quintals on radio tubes, 125 quintals on dynamos, and would increase the quotas on non-cutting tools and twist drills. They would, furthermore, be prepared to reduce the turnover tax on copper from 4 per cent to 2 per cent. Discussions with regard to this latter proposal will be renewed the latter part of next week. I will appreciate receiving any suggestions which you may have to make with regard to this proposal, or possible substitutes. PHILLIPS 3 611.516 Wines/3 The French Ambassador (De Laboulaye) to the Acting Secretary of State AIDE-MÉMOIRE The Ambassador of France has the honor to confirm to His Excellency, the Acting Secretary of State the first agreement resulting from the conversations carried on between the Department of State and the Commercial Attaché of the Embassy with a view to increasing the importation of American fruits into France and of French wines and liquors into the United States. The French Government will raise the quota of apples and pears originating in the United States that may be imported into France during |