651.116/275: Telegram

The Ambassador in France (Edge) to the Secretary of State

76. Yesterday evening, accompanied by Howell and Allport, Commercial Attaché, I had an hour’s conference with Mr. Rollin, Minister of Commerce, on the subject of the French quota policy. We were fortified with tables covering the importation of different commodities to illustrate our contention that the French did not adhere to any set formula in fixing the quotas and that an analysis of several recent allotments demonstrated that the different methods used in the cases cited worked against the interests of the United States and conversely to the advantage of competing nations, particularly Germany.

While M. Rollin endeavored to defend the French Government’s policy, which he admitted included its determination to select whatever years it cared to select to show normal and average trade, nevertheless our blunt charges of unfairness to the United States made a visible effect. We also demonstrated that the trade representatives of other nations were consulted when the quotas were made while to the best of our knowledge representatives of American business [Page 200] had never been thus favored. He did not dispute the facts that we presented to substantiate this charge.

The net result of the conference was an indication that a revision of the percentages in our favor in the radio quota might very properly be allowed for the second quarter which begins April 1st. On the patent leather quota, which we had been informed was to be issued within a few days, we remonstrated that the proposed percentages were arrived at on a very unfair basis to the United States. He promised to give further consideration to this quota.

While we have no definite assurances, generally speaking, I am of the opinion that as a result of the conference there will be more care in the future that American trade interests will be consulted and that we shall probably obtain larger proportionate shares than in the past. The French Government, however, is determined to continue the quota system as a temporary measure. The Minister, in defense of this plan, stated that French industry had been so adversely affected by importations during the past 2 years that they considered this partial embargo absolutely necessary. I, of course, called his attention to the fact that we treated every nation exactly the same, that our law permitted an entire embargo if we felt justified in using this extreme and that we were having great difficulty in explaining to American exporters the inconsistencies which were constantly apparent in their quota fixing policy.

Edge