611.59A31/81

Memorandum of Conversation, by Mr. C. S. Campbell, Jr., of the Division of Commercial Policy and Agreements

Participants: Mr. Vilhjalmur Thor, Chairman of the Icelandic Government Trade Delegation
Mr. Turkel, TA19
Mr. Campbell, TA

Mr. Thor called today at his request in order to have a preliminary discussion about the general provisions which might be included in a trade agreement. The standard general provisions were explained to him. Mr. Thor seemed to think that they would, in general, be acceptable to his Government, although he said that the articles relating to quantitative restrictions, exchange control, and monopolies and government purchases were extremely rigorous.

The subject of herring oil was also discussed. Mr. Thor was told that herring oil was not included in the list of products approved by the Trade Agreements Committee but that it was desirable to take advantage of his presence in this country to get some information in case a concession to Iceland should ever be considered. He answered various questions regarding the production of herring oil and the possibility of selling it profitably on the American market. Mr. Thor said that the maximum reduction in the duty and the import tax might be of benefit to Iceland under certain special circumstances which might arise during the war but that in more normal times such a reduction would not be sufficient to enable Icelandic producers to compete on the American market.

  1. Division of Commercial Policy and Agreements.