611.5131/1017: Telegram
The Ambassador in France ( Straus ) to the Secretary of State
867. If we were now to accord France relief on such of her cardinal points as lace and champagne it would seem highly improbable that the few trading advantages which would then be left us to offer would be of sufficiently compelling nature to induce France subsequently to reopen negotiations and to accept a supplementary treaty containing the benefits to the United States essential to form a well-rounded commercial accord. The veiled threat of the French Ambassador that the commercial relations between the two countries may drift into a more difficult phase may very likely be fulfilled but despite our being the larger exporter I feel that we can support the issue as well as or better than France which at present is in dire need of developing its trade outlets. There of course may be some ground for the Department’s apprehension concerning the aim of European countries to develop their own self-sufficiency but it is not seen how the proposed engagement would deter France from attaining that end or aid the United States to protect its failing markets in such threatened fields as cotton. Moreover, the conclusion of a treaty with the United States in which the United States is put in an inferior position to Germany, for example, so far as the advantages given are concerned would but serve to enable the European countries to draw into closer interdependency to the ultimate disadvantage of American exports. The present French Government is in as great need as its predecessor for showing concrete results in relieving the interior economic situation and with more and more outlets cut off or diminished the American market is of increased importance and should be sold dearly. I feel that France should be made to sue for the American market instead of which outside of adherence to the quota agreement it has failed to ratify the double taxation agreement, is withholding or delaying restoring the modus vivendi position of the United States on numerous tariff items and as reported in my telegram No. 863 [862], November 20, 7 p.m.,38 has now denied the United States a share in French nitrate purchases.
Bearing all these considerations in mind I feel that the French withdrawal of its previous offer is a bluff. I, therefore, strongly urge that the Ambassador in Washington be told that unless his Government is in a position to make a much more advantageous offer [Page 184] than the last one no justification is seen for placing France on the present calendar of commercial negotiations.