611.5131/841: Telegram
The Ambassador in France (Edge) to the Secretary of State
[Received 9:32 a.m.]
514. At the meeting yesterday afternoon dealing with the commercial treaty negotiations it developed that the Government after further consideration has reached the conclusion that it is impossible for it now to change the policy upon which it has recently embarked of relieving itself from the general most-favored-nation treatment obligations as quickly as possible, and while the ostensible excuse was given that it cannot be granted to us in its entirety except for the corresponding advantage of American tariff reductions or something much more substantial than has been suggested, there seems to be no reason especially in view of Department’s 30958 for entertaining the hope that we shall receive the complete minimum tariff.
The French delegates, however, insisted that they desired to improve the present economic relations between the two countries and stated that they were prepared to consider at once a permanent agreement establishing a position for us more favorable than that which we occupy under the modus vivendi of 1927. Since we now have the minimum tariff on all but 2½ to 5 percent of our actual exports to France the French offer approximates de facto most-favored-nation treatment. They will submit shortly a complete counterproposal in the above sense including specifically the concessions to be asked of us. If after its receipt this proposal proves to be unsatisfactory consideration might then be given to the advisability of employing article 338 in an effort to obtain general most-favored-nation treatment.
It was also indicated that the French Government would extend to the United States most-favored-nation treatment in those matters other than tariff which are usually contained in their most-favored-nation agreements such as those relating to goods in transit, warehousing, reexportation, transshipment of merchandise, et cetera, as well as most-favored-nation treatment concerning export duties, commercial travelers, etc., and under favorable conditions I anticipate little difficulty in including most of the other provisions of the draft of treaty which you have sent to me.
[Page 249]Negotiations are being continued next week regarding fruit, motion pictures and copper.
- Supra.↩