611.5131/660a: Telegram
The Secretary of State to the Chargé in France (Whitehouse)
345. Please present the following aide memoire, by direction of the President:
“The Government of the United States notes with satisfaction that the interpretation which the French Government places on the explanations and assurances contained in the American aide memoire of October 24, 1927,3 corresponds in the main to the position of the Government of the United States, and is gratified that the French Government pending negotiations is now prepared to reduce the rates of duty in respect of American products substantially to the status quo existing prior to September 6, 1927.
The Government of the United States is pleased to state that it accepts the interpretation which the French Government adopts, in the paragraphs numbered 1, 2 and 3 of its aide memoire of November 2,4 in summarizing the corresponding points set forth in the American aide memoire of October 24.
With reference to the suggestion of the French Government in the latter part of paragraph 3 of the aide memoire, the Government of the United States is happy to state that the United States Tariff Commission will be willing to take into due consideration any communication relating to the cost of production of French products which may be transmitted to it with the approval of the French Government.
Paragraph 4 relating to the so-called countervailing duties substantially interprets the assurance given by the Government of the United States. But just as, by reason of the recent revision of tariff rates effected by France, the new rates of duty to be applied to American goods are not precisely the same as those in force prior to September 6 last, so under the terms of existing American law it is not possible to restore the American rates to exactly their previous position. The action, however, which the American Government under existing law is able to take on being advised of the reduction of the French rates in question, will entail no appreciable additional burden upon French commerce, since it is estimated on the basis of the trade in 1926 that the duties to be paid on imports of French goods will be only about $7,000 greater annually than the duties that would be paid in case the status quo ante of the American tariff could be completely restored. Thus there is no appreciable difference between the regime desired by the French Government and that which the Government of the United States could establish.
As soon as the French Government shall have reduced its tariff rates applicable to American commerce in accordance with the assurances given, the Government of the United States will be happy to take up at once the negotiation of a general treaty of amity and commerce. Naturally it is for the French Government to determine whether and under what conditions it will be willing to conclude a particular treaty. The Government of the United States, however, [Page 701] cannot agree that the removal of the remaining discriminations against American trade be indefinitely deferred, or made conditional upon the result of the investigations to be made by the Governments of the United States and France.”
At the same time, please present informal memorandum contained in Department’s 346.5