I understand that the principal difficulties are in connection with
shipments of wines and fruits and I have caused a study to be made
of the charges raised. The results of this investigation have been
embodied in a memorandum which I take occasion to transmit to you
with the request that you be good enough to bring it to the
attention of your Government.
In the interest of finding a mutually satisfactory solution, it
might, however, be useful first to discuss these difficulties in the
light of the studies, which I understand you have also been making,
and of the attached memorandum. I had hoped to have an opportunity
to talk with you before leaving for my vacation, but in my absence
Mr. Phillips will be glad to see you at your early convenience.
[Enclosure—Memorandum]
The Department of
State to the South African
Legation
The attention of the American Government has been directed to a
press campaign in South Africa, which, it is stated, is being
carried on against the discriminatory actions of the American
Government with respect to the importation into this country of
South African products. It is reported that South Africa is
disturbed by the complete failure of its Wine Growers
Association to market South African wines and brandies in the
United States in consequence of American regulations which have
made the sale of these products impossible. It is charged that
American regulations for the importation of both wines and
fruits are solely of a political character and intended to keep
out South African products.
The wine exporters are said to have claimed that constant changes
in American customs regulations have made it impossible for them
to import wines, and that for this reason the South African Wine
Growers Association is closing its office in the United States
and withdrawing completely from business in this country.
It is also stated that in the interests of building up an import
trade of fruits into the United States the producers of South
African fruits had last year sent two Government entomologists
to this country to see if they could satisfy the American
authorities that the method of shipment employed in South Africa
would serve to combat the Mediterranean fruit fly and answer the
requirements of the Department of Agriculture with respect to
shipments of grapes. Following discussions with the officials of
the Department of Agriculture, the South African entomologists
were informed that experiments would be carried on on the basis
of their recommendations
[Page 861]
and suggestions; but following their return to South Africa
it is said that they have heard nothing further as to the
results of these experiments.
There appears to be no record in the Department of State of any
complaints by the South African Wine Growers Association against
regulations making it impossible to import South African wine
and brandy into the United States. In 1934, attempts were made
by the South African exporters to increase quota allotments and
at that time a permit to cover a shipment of South African wines
was refused because the application was not made in time. This
appears to be the only case of a complaint on record.
The Department of State has addressed inquiries to the Federal
Alcohol Administration and to the National Association of
Alcoholic Beverage Importers, of which the South African Wine
Growers Association is a member, to determine whether they were
aware of the situation alleged to exist. Both groups have
replied in the negative.
The Secretary of the Importers Association states that he knows
of no case which might have justifiably been made the cause of
any complaint and that there has been no discrimination
whatsoever against South African wine imports, which are subject
to the identical regulations as are similar imports from other
countries. In fact South African brandy will benefit through the
most-favored-nation clause from the reduction of import duties
on brandy brought about by the recent trade agreement with
France. In response to an inquiry addressed by the Secretary of
the Association, a representative of the South African Wine
Growers Association in New York, has replied that the reason for
the closing of its office is “purely a question of business
judgment”. He admits that the regulations apply to all countries
and do not discriminate against South African wine.
It is recognized that various changes have taken place in the
regulations from time to time which, owing to the distance
between this country and South Africa, have made it difficult in
all cases for South African exporters to comply as promptly with
American regulations, but it is understood that in the majority
of cases these difficulties have been adjusted or were on the
point of being adjusted through the assistance of the National
Association of Alcoholic Beverage Importers.
Should there have been cases of disagreements and difficulties
which might have been regulated through the intervention of this
Department, it is to be regretted that its attention was not
drawn to these matters before the decision to withdraw was
taken.
With reference to the problem of importation of fruits from South
Africa, it will be recalled that in 1923 an embargo against the
importation
[Page 862]
of fresh
fruits into the United States from countries where the
Mediterranean fruit fly was known to exist was imposed solely
for the purpose of preventing the spread of this insect pest in
this country. Following studies carried on by the Department of
Agriculture, an order (BPQ 362 May 1, 1934) was issued making
provision for the entry of such fruits if the shipments were
made in compliance with certain specifications. This method is
available to South African shippers as well as other countries
who are now sending fruits to the United States. Inasmuch,
however, as the South Africans have indicated they could not
conveniently use this method, experiments were undertaken
following the exchange of views with the South African
entomologists last year to determine if methods more suitable to
their particular needs could be devised. The Department of
Agriculture has assured this Department that the experimental
work is actively in progress in Hawaii but, as will be
appreciated, such experiments take time and it is difficult to
say exactly when results may be expected which would permit a
revision of the existing order in favor of South African
shippers.
Washington,
August 8,
1936.
