611.626 Wines/9: Telegram
The Secretary of State to the Ambassador in Germany (Dodd)
23. The German Ambassador called February 16 under telegraphic instructions of his Government to request a statement of the wines and spirits quotas given other countries and the grant to Germany of a quota equal to the maximum gallonage granted the most favored nation.
The original quota allotments granted without compensation or bargaining provided for an importation equal to the 1910–14 average from each country, and Germany’s quota allotment was made in accordance with this principle. Subsequently in return for reciprocal concessions the import allotment granted to various other countries has been substantially increased.
In considering the position taken by the German Government the Department finds itself faced with a consideration of the whole development of German commercial policy as reported by the able despatches received from the Embassy and the consular staff. It has particularly in mind the position taken by the German Government in allotting the prune quota as reported in your 153 of September 30, 1933,93 which definitely displaced developed American trade in favor of exports from a third country. The intentions of the German Government to reserve full discretion in the basis of allotment of quotas and the trend of the German Government to control more and more of its import trade, particularly of agricultural products, through Government monopolies which would exercise discretion in their purchasing sources, seems to have been borne out by subsequent events. In this judgment the Department is guided by report No. [Page 407] 10 of January 6 and No. 15 of January 10 from the Consul General in Hamburg94 and by the analysis of the significance of the German-Dutch commercial treaty made in the report No. 1094 of Vice Consul Gray of January 15.95
This Government might be willing to adjust Germany’s wine and spirits quota allotment if it in turn could be assured of most favored nation treatment by Germany under its quota system and under its monopoly purchase system. Would the Embassy transmit its views as to the wisdom of linking up action on wines and spirits with the broad question of Germany’s commercial policy and potential treatment of American goods? If so, does the Embassy consider it advisable or possible to suggest to Germany an agreement mutually defining most favored nation rights under quota and monopoly purchasing agreements. This Government already has such an agreement with the French Government.96 Your views on all phases of this subject will be welcomed.
- Foreign Relations, 1933, vol. ii, p. 481.↩
- Neither found in Department files.↩
- Not printed.↩
- See Foreign Relations, 1933, vol. ii, pp. 165 ff.↩