611.54244/30
Memorandum by Mr. David Williamson of the Division of Western European Affairs
Messrs. Nef and Amez-Droz came to see me this morning to discuss the smuggling agreement. They brought out that the watch industry of Switzerland was very much concerned over the provisions of the McCormack watch smuggling bill, believing that unless it was administered very conscientiously and carefully, it would result in restricting drastically the importation of watches into the United States. In fine, they feared that this bill was a device of the American watch manufacturers to strangle Swiss competition. They therefore asked that the following clause be considered for incorporation in the agreement:
“The United States herewith agrees not to take or enforce any unilateral measures, legislative, administrative or others, which would restrict or would have the effect of restricting the importation and the trade of Swiss watch movements and watches in the U.S.A.
Mr. Williamson explained again that of course we could not in any way obstruct the free action of Congress; that if the Legislature enacted the McCormack bill it was probable that the President would not feel justified in vetoing it; and that once it became law its mandatory provisions would certainly be carried out. He, therefore, said that we could not possibly accept the word “legislative”. He would [Page 769] undertake, however, to draw up a counter-proposal which would serve to allay the fears of the Swiss watch industry with respect to the administrative application of the measures proposed in the McCormack bill.
Mr. Amez-Droz announced that he intended to leave this country tomorrow and that he would be-gratified if a solution of this cardinal point in the smuggling agreement could be reached before his departure.
After consultation with Mr. Harry Hawkins it is proposed to present the following counter-proposal to the Swiss negotiators:
“The purpose of this agreement being to liberalize and increase trade, if the United States should take any action which the Government of Switzerland considers would unduly restrict or have the effect of restricting unduly the importation of and the trade in Swiss watch movements and watches in the United States it will consider sympathetically such representations as the Swiss Government may make with respect thereto; and if no satisfactory agreement between the two Governments is reached within thirty days the Swiss Government shall be free to terminate the agreement on sixty days notice.”29
- Marginal note: “Proposed to the Swiss negotiators and discussed with Mr. Grady, Oct. 24. D. W.”↩