611.6831/40
The Secretary of State to the Greek Chargé (Xanthopoulos)
Sir: I beg to acknowledge the receipt of your note No. 934 of September 10, 1924, in which you were good enough to inform me of the adoption by the Hellenic Government of a tariff policy which is to be realized through the imposition, in the near future, of maximum and minimum customs duties. I note your statement that in the absence of a treaty of commerce between the United States and Greece the Hellenic Government has heretofore accorded to American products the benefit of the conventional tariff on condition of reciprocity, but that this regime will come to an end on December 10, 1924.
I am glad to be informed, however, that the Hellenic Government is prepared immediately to enter upon negotiations for the framing of a commercial treaty on the basis of the new Greek tariff policy and with the sincere desire of arriving at a result satisfactory to both goverments.
The Government of the United States desires in the near future to conclude with the Hellenic Government a comprehensive treaty of friendship, commerce and consular rights which may serve as a lasting basis for economic and other intercourse between the two countries and their nationals. Pending the conclusion of such a treaty, however, the Government of the United States desires to propose to the Hellenic Government the immediate conclusion of a modus vivendi, to be effected through an exchange of notes, by means of which each country may assure to the commerce of the other unconditional most favored nation treatment.
The Tariff Act of 1922,10 at present in force in the United States, provides for a regime which may appropriately be compared to a policy of maximum and minimum tariff schedules. Heretofore the minimum tariff only has been in force and has been invariably applied to products originating in Greece. The President is authorized, however, in the event that any country shall fail to accord its lowest rates to products of the United States, to invoke additional duties, which may constitute a sort of maximum tariff against the products of such country.
[Page 275]In view of the existing laws and policies of the United States and of Greece, it seems fitting to propose a modus vivendi by the terms of which each country shall accord to the other its lowest rates. Upon assurance of a reply in like terms, therefore, I am prepared to sign and to deliver to you a note setting forth the understanding and intentions of the Government of the United States in this sense. The proposed text of such a note is transmitted herewith in draft form.11
Accept [etc.]