660c.116/45

The Minister in Poland (Stetson) to the Secretary of State

No. 1206

Sir: In amplification of the Legation’s telegraphic despatch No. 58, August 23, 1927, 11 a.m.,5 I now have the honor to transmit herewith copy of a note which I have forwarded to the Polish Ministry of Foreign Affairs, with regard to the question of the allocation of import licenses for American goods imported into Poland, in particular motor cars, tires and tubes.

Prior to presenting the note in question I had a conversation with Mr. Knoll, the Acting Minister for Foreign Affairs, with regard to the matter treated of therein. Mr. Knoll told me that Marshal Pilsudski,6 Mr. Bartel, the Vice Premier, and Mr. Kwiatkowski, the Minister of Commerce, had all come to the conclusion that the contingent system was not producing the results they had expected, for which reason they had decided that it must be done away with as soon as possible. He went on to say that the Ministry of Foreign Affairs had been from the first somewhat skeptical of the contingent system working out satisfactorily, but that they always found it [Page 616] difficult to prevail upon the Ministry of Commerce to accept their point of view in matters relating to commerce.

Mr. Knoll, however, either was unable or did not see fit to furnish me with any information as to when contingents would be done away with of as to what system would be inaugurated to replace the present one.

Further conversation with Mr. Knoll confirmed what I had already heard, namely, that other countries besides ourselves are pressing the Ministry of Foreign Affairs with a view to securing something more than the present contingent system grants them. I refer in particular to the Italian Government which, I understand, has been and is continuing to encounter great difficulties with regard to securing a sufficient contingent to permit them to export their oranges to Poland.

Mr. Knoll asked me to make the note that I told him I was about to send him as strong as possible, as that would strengthen his hand in his dealings with Marshal Pilsudski, Mr. Bartel and the Ministry of Commerce.

I impressed upon Mr. Knoll that at the present moment we were particularly interested in getting additional contingents for motor cars, tires and tubes. I pointed out that the sale of motor cars, tires and tubes was to a large extent dependent upon the season and that unless an additional contingent would be secured at once the manufacturers of the articles in question would lose their best opportunity of disposing of their goods in Poland. Mr. Knoll assured me that he would do his utmost to secure for us at an early date the additional contingents requested.

I am not particularly hopeful that anything concrete will come of the Legation’s representations in this matter, although I feel that the fact that we and other governments are keeping after the Poles will make them realize sooner or later that a change in their economic and commercial system, so as to accord most favored nation treatment to the goods of all nations, will be to their advantage in the long run.

I have [etc.]

John B. Stetson, Jr.
[Enclosure]

The American Minister (Stetson) to the Polish Acting Minister for Foreign Affairs (Knoll)

No. 795

Excellency: I have the honor to inform Your Excellency that the Warsaw representative of the Goodyear Tires Company has brought to the attention of the Legation the fact that, while he had requested that he be permitted to import 110,000 kilos of automobile tires and [Page 617] tubes during the third quarter of the present year, import permits covering only 13,000 kilos were granted him. The Legation further understands, from a reliable source, that the Dunlop Tire Company, a British concern, and the French Michelin Company, have each received import permits covering approximately 75,000 kilos for the same period.

The Modus Vivendi of 1925 between Poland and the United States stipulates that “in the matter of licensing or prohibitions of imports or exports, Poland and the United States, respectively, so far as they at any time maintain such a system, will accord to the commerce of the other treatment as favorable, with respect to commodities, valuations and quantities, as may be accorded to the commerce of any other country” and “every concession with respect to any duty, charge or regulation affecting commerce now accorded or that may hereafter be accorded by the United States or by Poland by law, proclamation, decree or commercial treaty or agreement to any foreign country will become immediately applicable without request and without compensation to the commerce of Poland and of the United States and its territories and possessions respectively.”

Under the foregoing provisions permits should be granted for importation of American automobile tires into Poland in at least as large a quantity as of English or French tires.

My Government has directed me to bring the foregoing to the attention of Your Excellency’s Government, and to protest against what it considers discrimination against American trade, in contravention of the terms of the Modus Vivendi of 1925. In the absence of facts and figures proving the contrary, my Government is obliged to believe that such discrimination really does exist. My Government is confident, however, that following an examination of the facts of the situation the Polish Government will immediately take the necessary steps to insure that the rights to which imports from the United States are entitled under the terms of the Modus Vivendi between the two countries are in fact fully guaranteed.

The Legation is unable to consider as final Your Excellency’s note of July 21st last, relative to contingents for the importation of American motor cars. While I appreciate Your Excellency’s statement that the Polish Government is examining the situation with a view to granting a special contingent for the importation of American motor cars, I feel I must reiterate to Your Excellency that the sale of motor cars in Poland is largely dependent on the season of the year, and that unless the special contingent Your Excellency mentions is forthcoming at an early date the American manufacturers interested will lose the opportunity of disposing of their cars which an early granting of such a contingent would have insured them.

[Page 618]

With regard to the system under which contingents are granted, the memorandum accompanying Your Excellency’s note leaves me with the impression that it is the policy of the Polish Government not to publish but to keep secret the data relating to the granting and establishing of such contingents, such as the number of licenses issued, the nationality of the person to whom issued, etc., which in itself amounts to a deterrent to healthy trade. This is unfortunate, more especially in view of the policy of my Government of making public all information regarding imports into and exports from the United States and its territories, and certainly lends weight to the belief that there does exist discrimination against American products in Poland, in the matter of granting import licenses.

Accept [etc.]

John B. Stetson, Jr.
  1. Not printed.
  2. Premier and Minister of War.