contrary it would be very happy, as it has previously declared, if there were any possibility of accomplishing this result by the proposed negotiations without however departing from the premises set forth above. The Royal Government agrees with the Government of the United States that, as regards tourist traffic ocean freights, remittances from emigrants, and the payment of pensions, the importance of these items should neither be over-estimated nor under-estimated. The Royal Government, however, must observe that items-and some of them in particular-that were of marked importance in the past have now been reduced, so far, at least, as Italy is concerned, to negligible figures and that to bring these factors into the discussions would seem to require an examination of other like questions;-for example, the purchase of goods in third countries, the equivalent of which is, to a greater or lesser extent, not destined to remain within those countries themselves (for example, purchases of copper in Chile). In regard to the assurances desired by the United States Government that during the discussions the Italian Government will not adopt any measures that might constitute discrimination against American trade in comparison with the trade of other countries, the Italian Government believes it opportune to recall that it has never adopted measures that can be included in such a category, nor does it now apply regulations restricting importation except in cases of unavoidable national necessity, and for such cases it can not but reserve to itself that liberty of action that is necessary in these circumstances. It does not hesitate to declare, however, that in the application of such regulations it will always endeavor to give the greatest consideration in an effort to reconcile Italian interests with those of the United States. Such being the case, the Italian Government holds itself in readiness to initiate trade negotiations with the United States and desires to observe that there is no objection on its part to an announcement that the two Governments are in agreement that the discussions may take place. As to the date on which the discussions will be opened, it is understood that agreement will be reached by the two Governments. REPRESENTATIONS REGARDING IMPORT QUOTA SYSTEM 665.116/214: Telegram The Chargé in Italy (Kirk) to the Secretary of State ROME, August 20, 1934-5 p. m. [Received August 20-3: 10 p. m.] 174. Ministry of Foreign Affairs in a note verbale dated August 18 received today requests the following be communicated to the American Government: "The unfavorable state of the Italian trade balance, the deficit of which was considerable in the past and now tends constantly to increase, has led the Royal Government to study measures to check and reduce as far as possible its unfavorable balance of trade with foreign countries. To this end the imports of certain commodities into Italy have under a provision now in course been placed on a quota system. It should, however, be noted that in drawing up quotas the Royal Government has taken care to consider as far as possible the importance which Italian imports of the different commodities affected has had in the past and now has for each of the various countries concerned. The quotas are moreover restricted in fact to a very small number of commodities and are of a strictly general character in no manner discriminating against any country. The quotas fixed refer to the whole calendar year: that is, shipments already imported between January 1, 1934, and the date the measure goes into effect are to be computed in the quota assigned for the period January 1-December 31, 1934. The commodities imported from America to which the measure in question applies are shown in the enclosed table which also indicates the amount of the quota assigned for each commodity." Following quotas set forth in above-mentioned table: lard 10491 metric quintals; celluloid in bars, strips or sheets 5 metric quintals; worked celluloid unspecified 10 metric quintals; 'superphosphates (item 715 a 1) 69 tons; brushes of animal fiber described under tariff item 914 6 2-5 metric quintals. Commercial Attaché points out that statistics show that lard imports from the United States already exceed quota set for this year. Mail despatch follows. Inform Commerce. KIRK 665.116/214: Telegram The Acting Secretary of State to the Chargé in Italy (Kirk) WASHINGTON, August 21, 1934-7 p. m. 70. Your 174, August 20, 5 p. m. Has some definite formula been established upon which quota shares for each country are based-e. g. percentage of average imports over a given period of time? Let me know what formula if any has been established. In cases where quotas have already been exhausted will goods in customs warehouses and in transit be admitted entry? It seems only fair that they should. It seems highly inequitable to make quotas retroactive to January 1 and charge against quotas imports brought in over such a long unrestricted time. It means in the case of lard total disruption of trade for the remainder of this quota period. Some imports should be permitted in order that ordinary trade lines may at least be kept alive. I would like to have your views on the foregoing points together with any other pertinent information such as the quota on coffee. PHILLIPS 665.116/216: Telegram The Chargé in Italy (Kirk) to the Secretary of State ROME, August 23, 1934-8 p. m. [Received August 23-3:55 p. m.] 180. Department's 70, August 21, 7 p. m. Following explanatory conversations at Ministry of Corporations and Director General of Customs, the Embassy understands that the quota assigned to the various countries for a determined product is based on the imports thereof from the respective countries for some recent arbitrarily selected year. The year chosen differs for different products. It is also understood that goods in Italian customs warehouses up to August 18 or shipped from countries of origin by the date as evidenced by shipping documents will be admitted. The Embassy is orally informed that in addition to lard the quotas on celluloid and brushes from the United States have been filled. The Commercial Attaché has pointed out to the Ministry of Corporations and the Director General of Customs to [the?] injustice of making the quotas retroactive with the result that American exports of certain commodities are stopped for the remainder of the year and I have made similar oral representations to the Ministry of Foreign Affairs. There is a general impression among the diplomatic representatives here that further notifications as to quota regulations affecting special commodities from various countries may be expected and consequently it would seem advisable that written representations be addressed to the Ministry of Foreign Affairs in reply to its note referring to my 174, August 20, 5 p. m. Would appreciate therefore receiving from the Department any observations in addition to those contained in its No. 70, August 21, 7 p. m. to be embodied in note to Ministry. In this connection it must be noted that as these import restrictions including the quota on coffee (see my despatch No. 668, August 20th 13) are ostensibly imposed with a view to combating Italy's adverse trade balance with certain countries it is probable that any general concessions as regards these restrictions would be granted by Italy only in exchange for benefits accorded to Italy by those countries. Efforts, however, might be made to obtain minor concessions if a good case can be proved that certain quotas are clearly to occur. Inform Commerce. "Not printed. KIRK 665.116/216: Telegram The Acting Secretary of State to the Chargé in Italy (Kirk) WASHINGTON, August 27, 1934—4 p. m. 72. Your 180, August 23, 8 p. m. The establishment of quotas as such affords no basis for representation. If quotas are established we seek and expect a fair share of each quota. The American share of any global quota should be proportionately the same as the share of trade in the commodity in question enjoyed by the United States during a prior representative period of unrestricted trade. That is, if the United States supplied say 25% of total imports into Italy during a representative period of unrestricted trade, then the American share of the global quota established should be 25%. We ask that a uniform period be established for all commodities unless it appears that in the case of particular commodities the period chosen would not in fact be truly representative. The arbitrary choice of any period for any commodity leaves the door open for discrimination. Unfavorable years might consistently be chosen for American products in order to throw advantages to third countries. A fixed representative period removes that hazard. You should endeavor to obtain recognition from the Italian Government of the two foregoing points. I might add that we do not expect to have to bargain for the allotment to us of America's fair share of each quota. Please continue your efforts on behalf of those commodities, the quotas on which have been exhausted. PHILLIPS இது 665.116/223: Telegram The Ambassador in Italy (Long) to the Secretary of State ROME, September 18, 1934-5 p. m. [Received September 18-2:40 p. m.] 201. In reply to Embassy's note verbale based on Department's 72, August 27, 4 p. m.; and 70, August 21, 7 p. m., Italian Ministry of Foreign Affairs replies as follows: "The contents of the above-mentioned note verbale were submitted to the careful consideration of the appropriate Royal authorities whoafter again pointing out the exceptional and temporary character of the measures recently taken by the Royal Government to restrict imports into the Kingdom-have confirmed the fact that in assigning quotas the imports from the different countries during the given year were taken as the basis for each commodity and that the proportion existing during that year between the imports of the product from the different countries has been maintained unaltered. The method followed therefore appears to conform to the assurances requested by the Embassy. As to the year chosen as the basis for the quota the method followed by the Royal Government is to place the imports of each commodity on the basis of a year during which they represented normal require ments. Finally as to the retroactive character of the measures in question it is to be noted that the Royal Government has been forced to follow this method-which has furthermore already been adopted by other countries—because of the urgent necessity of checking certain imports which during the first few months of the current year had taken on proportions such as to inflict serious hardship on Italian producers. The Royal Ministry of Foreign Affairs has the honor to assure the Embassy of the United States in any case that the appropriate Royal authorities will consider with the utmost good-will any individual difficulties which might arise as a result of the measures in question." In addition to Embassy's representations, representative in Italy of Swift Company has filed protest with Italian authorities on lard quota (see my 708, September 15th 14). Inform Commerce. LONG PROPOSED EXTRADITION TREATY BETWEEN THE UNITED STATES AND ITALY TO REPLACE THE TREATY OF MARCH 23, 1868 211.65/99 Telegram The Secretary of State to the Ambassador in Italy (Long) WASHINGTON, March 10, 1934-1 p. m. 14. Pointing out that present extradition treaty between United States and Italy made in 1868 15 is not sufficiently comprehensive to serve present needs of two Governments, please inquire of Foreign Office whether Italian Government will agree to negotiate new extradition treaty with United States and if so whether it will instruct its Ambassador to this country to take up the matter promptly with the Department. It is desired if practicable to submit this treaty to the Senate before end present session. 211.65/100: Telegram HULL The Ambassador in Italy (Long) to the Secretary of State ROME, April 3, 1934—11 a. m. [Received April 3-8:30 a. m.] 51. Department's telegram No. 14, March 10, 1 p. m. Matter taken up with Foreign Office and I am now in receipt of reply from Under Secretary for Foreign Affairs as follows: 14 Not printed. 15 For text of treaty of March 23, 1868, see William M. Malloy, Treaties, Conventions, etc., Between the United States of America and Other Powers, 1776-1909 (Washington, Government Printing Office, 1910), vol. 1, p. 966. |