611.6231/323
Memorandum by the Secretary of State
The German Ambassador called and referred to the recent conversations between him and the Counselor of his Embassy and myself and others here in the State Department in regard to wine and liquor quotas and the kindred questions that the United States Government brought up in that connection, including discriminations against us by Germany in the light of the favored nation doctrine and the general question of the relation between quotas and the most-favored-nation clause. The Ambassador also referred to recent general statements of American officials recognizing the desirability of better balanced trade and to similar statements with particular reference to our balance of trade with Germany, and stated that his Government wishes to enter on the broadest possible discussion with the United States covering these questions and to be among the first countries with which the United States undertakes reciprocity negotiations. To this end his Government had prepared to send over during March a delegation of five members of the German Government to commence conversations with the United States officials touching on the undertaking of a broad reciprocity agreement which, he hoped, would somewhat improve the balance of trade of his country with the United States.
I expressed my interest in this suggestion and the disposition of my Government, as soon as practicable, to take up negotiations with any and all governments disposed to enter into reciprocity trade agreements [Page 417] with the United States Government. I stated, however, that unless and until the authority requested of Congress today for the President to negotiate such trade agreements and put them in operation without the necessity for ratification by the Senate had been granted, it had not been deemed advisable for us to enter upon negotiations; that the negotiations heretofore commenced with certain Governments are at a standstill pending the outcome of the Congressional authority sought by the President. I said that we should be glad to keep in touch with the German Ambassador and his associates during the coming weeks to the end that they might be kept thoroughly familiar with the progress of the proposed legislation giving Presidential authority, as already stated; that it might be possible within two or three weeks for us to know rather fully the status of the proposed legislation and thereby forecast with some accuracy the outcome, with the result that we would at a correspondingly earlier date be able to take up and discuss with the Ambassador all phases of his proposal. He indicated that he could understand and appreciate what I said although he did not heartily concur in everything stated. He did finally say that he would send the substance of these statements back to his Government.
The Ambassador further stated that there were some phases of the present commercial treaty between the United States and Germany which his Government would like to modify and inquired of me whether our Government would be disposed to consider those phases without the necessity on the part of his Government of giving notice of one year. I replied that I would be sympathetically disposed to consider the Ambassador’s request, but indicated that before any commitment could be made it would be necessary to know the nature of the modifications desired by the German Government.