651.113/181

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

No. 939

Sir: I have the honor to refer to the Department’s telegram No. 29 of January 24, 5 p.m., regarding the recent increase in the French duty on rice. There are enclosed for your information copies of communications to the Foreign Office dated January 31 and March 29,44 asking that the United States be given the new French minimum tariff on rice. There are also enclosed a copy and translation of the Foreign Office note dated May 28,45 in which it is stated that since the duty on rice was not affected by the decree of August 30, 1927, there is no reason why the modus vivendi rates should be applied to this product, but that if the United States Government would remove the excise tax of 10 cents per 100 lbs. on anthracite coming from Indochina, the French Government would give to the United States the minimum tariff on whole rice.

[Page 192]

The note from the Foreign Office involves an interpretation of the modus vivendi of 1927.46 This Embassy heretofore has taken the position that the basis of the modus vivendi of November 21, 1927, was that the duties paid on imports from the United States should be the same as those paid before the decree of August 30, 1927, except when the new minimum duties were higher than those rates, and in the latter case the new minimum rates should be paid. Furthermore, it has maintained that this principle should be applied substantially to all products regardless of whether they were listed in that decree.

Your attention is invited to the fact that the French offer applies only to whole rice, which is the kind of principal interest to American exporters.

I should appreciate your instructions as to what further action is to be taken in this matter.

Respectfully yours,

Jesse Isidor Straus
  1. Neither printed.
  2. Not printed.
  3. See note of November 15, 1927, from the French Ministry for Foreign Affairs to the American Embassy, Foreign Relations, 1927, vol. ii, p. 702.