611.5131/1053: Telegram
The Ambassador in France (Straus) to the Secretary of State
[Received April 1—10:45 a.m.]
272. Department’s 113, March 30, 6 p.m. We welcome the French gesture for immediate action on commercial matters and consider it a result of the policy of letting them come to us. Therefore it would seem that before granting Belgian treatment as a preliminary to discussions it would be well to see that at least some one of the French concessions was put into effect. This might very properly be the removal of discriminatory rates on the import turn over tax. There is, however, no reason why some announcement should not be made now if it is made extremely clear that the extension to France of these concessions is temporary and dependent upon reaching a satisfactory accord in a reasonably short time.
We have just been turned down on the matter of the nitrate licenses5 and while the Senate has passed the double taxation treaty6 for ratification the actual final step, namely, the signature of the President has not taken place and could still be thrown into the balance.
It would likewise seem that advantage might be taken of these negotiations to urge the abandonment by the French of the quota system which is after all the principal hindrance to commerce due to the uncertainties and unexpected limitations on trade which it imposes. There is in France a certain amount of agitation for this abandonment, most naturally the banking and exporting houses, and the injection of this idea while unlikely of realization in any scheme which would grant at the same time minimum tariffs might strengthen this movement.
The Embassy is making every effort to activate disclosure of items on list.