662.116/207
The American Embassy in Germany to the German Ministry for Foreign Affairs 13
The Embassy of the United States of America has the honor to recall that in the recently signed treaty between Germany and Finland, cardboard and certain other analogous products, classified under tariff article 651a, are admitted at a conventional rate of 5 marks in an amount which corresponds to 10 per cent in goods, of the quantity imported [Page 420] into Germany from Finland in 1933 and from this the quantity has to be deducted which, after an understanding come to by both parties on the basis of joint investigations, has been imported from January 1, 1934, until the date of the preliminary adoption of the treaty.
The Celotex Company of Chicago applied for the benefits of the most-favored-nation clause of the Treaty of Friendship, Commerce and Consular Rights between the United States and Germany, for certain of its products which apparently fall under the same tariff number as that of the Finnish cardboard. The customs authorities informed the Celotex representatives that, as the amount imported from the United States last year consisted of 850 tons, only 85 tons could be imported at the reduced rate and that from this quantity there should be deducted all imports already made in the current year at the higher (16 marks) rate of duty. As a result the Celotex Company has in fact not been able to obtain any entries under the reduced tariff rate.
It will be recalled that last year the German Government signed a protocol with Yugoslavia whereby a contingent of dried prunes in sacks in a quantity fixed at 8000 tons was admitted at a tariff reduction of from 30 to 10 marks. In this case the most-favored-nation clause was construed by the German Government to entitle American imports to exactly the same amount as that accorded Yugoslavia. In the Finnish case, the most-favored-nation clause is interpreted to apply on the proportional basis.
The Embassy of the United States of America would be glad to learn what principle determines the decision of the German Government as to whether the most-favored-nation clause is to be applied on the basis of previous percentage of imports or on the basis of the actual quantity used by the other nation, the concession to which gives rise to the application of the said clause.
- Copy transmitted to the Department by the Ambassador in Germany in his despatch No. 769, April 28; received May 9.↩