811.512362 Shipping/24

The Secretary of State to the Ambassador in Germany ( Dodd )

No. 211

Sir: The Department refers to your despatch No. 507 dated February 6, 1934, concerning the desire of the United States Lines Operations, Incorporated, to secure exemption from the trade tax in Germany. Copies of a letter dated May 22, 1934, and of its enclosures, received from the Acting Secretary of Commerce dealing with this matter are transmitted herewith for your information.15 You will observe that the last paragraph of the letter from the Department of Commerce reads as follows:

“If the German authorities decline to exempt the United States Lines from the trade tax assessed by Berlin and other German municipalities, under our interpretation of the scope of the existing arrangement between the two countries the situation presented would seem to make advisable a further exchange of notes with a view to effecting an arrangement that would protect American shipping companies from the imposition of such taxes. The Department is unable to suggest any other action that may be taken by this Government.”

You are accordingly instructed to take up this matter with the Foreign Office in an endeavor to reach an understanding for a further exchange of notes with a view to effecting an arrangement that would protect American shipping companies from the imposition of such taxes. You are requested to advise the Department in case the German Government will conclude such an arrangement, and you will transmit suggestions for the terms to be included in the notes to be exchanged. Upon the receipt of your report a further instruction will be sent to you setting forth the text of the notes to be exchanged on this subject.

Very truly yours,

For the Secretary of State:
William Phillips
  1. None printed.