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United States Department of State / Foreign relations of the United States diplomatic papers, 1934. Europe, Near East and Africa
(1934)

Netherlands,   pp. 627-641 PDF (5.6 MB)


Page 627


NETHERLANDS
PRELIMINARY DISCUSSIONS RESPECTING A TRADE AGREEMENT
     BETWEEN THE UNITED STATES AND THE NETHERLANDS
611.5631/117a
The Secretary of State to the Minister in the Netherlands (Emmet)
No. 29                                WASHINGTON, May 24, 1934.
  SIR: I am enclosing, for your confidential information, a copy of a
commercial treaty draft' which was handed this afternoon to the
Netherlands Minister in Washington 2 for transmission to The Hague
for the consideration of his Government.
  The negotiation of this treaty has been undertaken primarily in
order to make it possible for the United States to accord to the Nether-
lands as favorable treatment with regard to the excise tax upon coal
and coke as it accords to Germany and Great Britain on the basis of
the most-favored-nation treaties with those countries. The Revenue
Act of 1932 3 contained a provision exempting from this excise any
country which imports more coal from the United States than it ex-
ports to the United States and upon the basis of this provision Ca-
nadian coal imports were declared tax exempt. Great Britain and
Germany thereupon claimed a like exemption on the basis of their
treaty rights and somewhat later the Netherlands claimed the same
treatment as that accorded to Great Britain and Germany.
  The Netherlands Minister in presenting this claim stated that the
Dutch interest involved was negligible but that the claim was being
raised as a matter of principle in order that the Dutch Government
might know definitely whether the United States and the Netherlands
were to continue to accord mutual most-favored-nation treatment to
each other.
  The most-favored-nation treatment accorded to the Netherlands ap-
pears in the past to have rested, as stated in the Legation's despatch
No. 480 of October 5, 1932, 1 not upon a treaty but merely upon Presi-
dent Taft's Proclamation of January 29, 1910,4 and a note dated July
'Not printed.
2Jonkheer H. M. van Haersma de With.
' 47 Stat. 169.
'36 Stat. 2522.
                                                        627


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