United States Lines, that he is convinced that under the new decree the American lines will experience no difficulty and that there is no discrimination under the procedure now established, against them in favor of the German lines or vis-à-vis other foreign lines. The new decree requires the foreign steamship lines and agencies in Germany to make a monthly report to the authorities on the number of passages they have sold and the total income from passage money collected. They will also have to show every month the sums which they have expended in Germany for operation and upkeep of their passenger offices in Germany. The decree permits them to sell passage to any person who may apply therefor irrespective of the cost of the passage, without the companies or the passengers securing previous authorization from the fiscal authorities. The decree permits the American companies to pay out of their passage money collected in Germany, their costs of operation in Germany and then transmit without further authorization 50% of the balance. If the company wishes to transfer more than 50% of the balance, it may make special application for such transfer. As the American lines spend a good deal of the money which they receive from passenger income in Germany for the operation of their vessels from Hamburg and Bremen as well as for the maintenance of their passenger offices and operating offices in Germany, the prescriptions with regard to the transfer of funds do not offer any inconvenience to the American lines. The American lines have not up to now had any difficulty in transferring any of their funds which they wished to transfer, and Mr. Atterholt believes that they will not have any difficulty in the future under the new decree in this respect. I am glad to be able to report the satisfactory settlement of this matter. The wide publicity which the planned discriminatory action had in the English and so far as I know, in the American press, undoubtedly had a very excellent effect in bringing about this rapid adjustment. There is transmitted herewith a clipping from the Berliner Tageblatt of August 24,15 giving the contents of the new decree. As the matter is satisfactorily adjusted, I have not deemed it necessary to make a translation of this article or to submit a translation of the new decree. Respectfully yours, GEORGE S. MESSERSMITH 800.8810/1159: Telegram The Secretary of State to the Consul General at Berlin (Messersmith) WASHINGTON, October 21, 1933-1 p.m. The Roosevelt Steamship Company alleges that pressure is being and has been brought to bear upon German importers and exporters to con15 Not reprinted. fine their shipments to German ships. It is not known whether this pressure, which it is claimed has reached a stage of intimidation, comes from official or party sources. I wish you would discreetly investigate this matter and, if you are able to obtain the necessary concrete information, take it up directly and informally with the appropriate authorities. HULL 800.8810/1166 The Acting Secretary of State to the Representative of the Roosevelt Steamship Company (Morrison) WASHINGTON, November 29, 1933. SIR: Referring to your personal call on October 19, 1933, at which time you stated that German importers and exporters were understood to be under pressure and even intimidation to use German ships exclusively in the shipment of goods, I am now in receipt of a report 16 from Mr. Messersmith, the American Consul General at Berlin with regard to this matter. Mr. Messersmith states that he has carefully gone into this question and that he has discussed it at length with Mr. Monroe, the general freight traffic manager for Europe of the United States Lines and the Baltimore Mail Line. He states that it was the conclusion both of himself and of Mr. Monroe that German importers and exporters were favoring German ships whenever possible, but that no direct action of a discriminatory character had been taken and that there was no adequate basis at this time on which action could be taken by the Consulate General or by the United States Government. He went on to explain that various German import associations were understood to have tacit agreements among themselves that their products should be shipped wherever possible in German ships. He added, however, that there appeared to be no formal agreements among the importers about carriers. With respect to the policy of the German Government, Mr. Messersmith reported that it is entirely conscious that discriminatory practices in favor of German lines with government approval and authority could not be carried through. He pointed out that the plan some time ago to favor German ships by the exclusive use of registered marks by passengers traveling on German ships foundered on the rocks of united maritime opinion in other countries, and that it was not likely that the German Government would in the freight traffic business issue any orders or instructions which would be of a discriminatory character and to which other governments could raise objection. 18 Not printed. He stated that he would continue to follow the matter carefully and if there should be any developments of interest, he would not fail to concern himself with the situation. Very truly yours, For the Acting Secretary of State: PIERREPONT MOFFAT, Chief, Division of Western European Affairs REPRESENTATIONS AGAINST GERMAN IMPOSITION OF DISCRIMINATORY QUOTAS ON IMPORTATION OF AMERICAN PRODUCTS 662.116/158 Telegram The Ambassador in Germany (Dodd) to the Secretary of State BERLIN, September 18, 1933-5 p.m. [Received September 18-2:55 p.m.] 145. From the commercial attaché for commerce. 13. Yugoslavia granted import quota 8,000 tons prunes in sacks at 10 marks per hundred kilos besides duty free contingent prunes for prune pulp equal 65% German manufacturers requirements. United States officially assured of equal quota. Consulate informed by Reich Ministries of Finance and Agriculture that no details of allocation have yet been worked out which would seem to imply "first come first served." These Ministries indicate that dealers who have imported but not yet disposed of prunes entered at the rate of 30 marks per hundred kilos might submit through local customs offices petitions for remission of duty above 10 marks; quantities on which duty by [is?] thus being remitted would, of course, be charged against American contingent. Reich Finance Ministry further states that for the United States to obtain benefit of this new rate the Embassy must address to that Ministry through the Foreign Office a letter requesting the application of the new duty rate and designating a port of entry at which American prune shipments shall be entered. The same Ministry suggests that only one port of entry be named and that Hamburg should be that port. DODD 662.116/159 Telegram The Secretary of State to the Ambassador in Germany (Dodd) WASHINGTON, September 20, 1933-1 p.m. 113. Your 145, September 18, 5 p.m. Upon what basis is quota allotted and for what period? Eight thousand tons is over twice usual Yugoslav annual imports and about a third of the average imports from the United States for the past 5 years. If we are to be given a quota equal to the Yugoslav quota and one not based on our proportionate share of the trade over some given period of time as in the case of the recent bacon quota the discrimination against our trade is obvious. Furthermore, in view of our treaty rights, I do not understand why it is necessary for the Embassy specifically to request that this rate apply to American products. HULL 662.118/160 Telegram The Ambassador in Germany (Dodd) to the Secretary of State BERLIN, September 22, 1933-5 p.m. [Received September 22-3 p.m.] 148. Your 113, September 20, 1 p.m. Foreign Office today informed the Embassy orally as follows: The Yugoslav quota 17 is not based on imports over any past period but merely resulted arbitrarily from the negotiations. An 8,000 ton quota is available to Yugoslavia for the period from September 24, 1933, to July 31, 1934, and beginning with August 1, 1934, the same quota is available annually. The United States will receive an equal quota but it cannot be granted a quota based on the proportionate share of past trade. In this connection the opinion was bluntly and forcibly expressed by the Foreign Office that if the United States claim for a proportionate quota should come before an international tribunal it would be decided adversely to the United States and it was evident that the Foreign Office felt sure of Germany's right to fix quotas on an equal rather than on a proportionate basis. To obtain customs clearance for the United States prune quota the Embassy was asked to conform with the action required from Yugoslavia by also sending note to Foreign Office designating two customs offices through which it is desired that prunes be cleared. Our appropriate consulates have suggested designating customs offices in Hamburg and Bremen. Please instruct Embassy as to sending such a note. 17 Prune import quota. DODD 662.116/160 Telegram The Secretary of State to the Ambassador in Germany (Dodd) WASHINGTON, September 28, 1933-5 p.m. 119. Your 148, September 22, 5 p.m. and 150 of September 26, noon.17a The principles involved in this case extend far beyond the mere question of American prune exports to Germany. Our whole trade relations with Germany would probably be seriously jeopardized if Germany were to embark upon a general policy of customs quotas. I am very much concerned over this matter, and I wish to impress on you the necessity of bringing our position in a forceful manner to the attention of responsible German authorities. For the present I prefer to keep our representations on an oral basis. This Government has always opposed the adoption of quota systems. If adopted, however, we have insisted that the relative position of our trade should not be altered and that American exports should be given a share of any quota equal to our proportionate share of average unrestricted imports. The trade of all countries is thus restricted in a like degree. However, under this prune quota, Yugoslavia will be in a position to more than double her usual exports to Germany and this increase will be at the expense of usual American exports, since American prunes subject to the higher rate of duty cannot possibly compete with those prunes permitted entry at the lower rate of duty. The German action. thus curtails American trade and makes possible an expansion of Yugoslav trade. The advantage to Yugoslavia is obvious and such an advantage would seem certainly to fall within the meaning of paragraph 4 of Article 7 of the commercial treaty.18 Furthermore it seems inescapable that with the exhaustion of the American quota there would result a higher rate of duty for further imports of American prunes than for Yugoslav prunes, and a clear violation of paragraph 2 of Article 7 would then arise. I want you to take up this matter orally with some person in authority and endeavor to work out some reasonable solution of the problem. You should make it perfectly clear in your discussion that this Government considers that a customs quota which is not allocated on a proportionate basis is discriminatory and contravenes the treaty rights of the United States. Furthermore, as paragraph 4, Article 7 of the treaty specifically provides that we do not have to ask for the extension to us of advantages given other countries, please bring this consideration to the attention of 17 Latter not printed. 18 Treaty of Friendship, Commerce and Consular Rights between the United States and Germany, signed at Washington, December 8, 1923, Foreign Relations, 1923, vol. I, p. 29. |