662.6331/86: Telegram

The Minister in Austria ( Stockton ) to the Secretary of State

[Paraphrase]

30. Your 14, March 30, 5 p.m. Commodities not produced or not exported by Germany, for example, tobacco (a government monopoly in Austria but protected by tariff should monopoly be removed), cotton and copper (free entry) flour, wheat, fruit, meats, lard, oils, and leather shoes will probably not be affected by the customs union. These items amounted to about 70 percent of American imports in 1930. Products which will be gravely affected include rubber goods, razor blades, films, machinery, automotive vehicles, typewriters, cash registers, adding machines, chemicals, and household goods: approximately 12 percent of 1930 American imports. German competition in these lines will be sharp because the interim duties levied upon them as exports from Germany to Austria will be less than those set for the customs union. Wherever German competition is keen the charges determined for the combined customs territory will be high on the remaining 18 percent of miscellaneous articles. No commodity will probably bear a new duty above the maximum or below the minimum of any existing charge in either country except in cases where Austria and Germany feel there is a need for a prohibitive duty.

Stockton