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

Persia,   pp. 884-893 PDF (3.5 MB)

Page 884

611.9131/39a :Telegram
The Acting Secretary of State to the Minister in Persia (Hornibrook)
                           WASHINGTON, November 8, 1934-6 p. m.
  35. Your despatches Nos. 186 August 22 and 228 October 1.' De-
partment is prepared to enter into early negotiations with Persia
envisaging the exchange of reciprocal concessions on rugs and auto-
motive products if reasonably assured of prospects of a rapid and
satisfactory conclusion. The prospect of establishment of an auto-
mobile monopoly in Persia unfortunately complicates the situation.
  This Government would be prepared to offer a reduction in the
United States import duty on oriental rugs under paragraph 1116 (b)
of the Tariff Act of 1930 2 in exchange for abatement of the various
restrictions imposed on the importation into Persia of automobiles,
parts, accessories, tires and tubes since 1930: this would involve suit-
able undertakings with respect to export certificates and import
licenses, the sale of dollar exchange, customs appraisal, the limit of
valuation for duty-free importation, import quotas and invoicing as
well as adequate assurances with respect to the possible establish-
ment of an automobile trade monopoly in Persia.
  While the Department is reluctant to insist upon assurances against
any monopolization of the Persian automobile trade as a part of such
an agreement, it has strong doubts of the practicability of negotiat-
ing an agreement without such assurances because of the practical
impossibility of reconciling any form of monopolization of the auto-
mobile trade with the necessary assurance that the entire American
automotive industry will enjoy a full and free opportunity to share
in the benefits of the trade agreement, which is a sine qua non of its
  The Department desires you to discuss the foregoing in strict con-
fidence with the appropriate Persian authorities making clear to
them that a reduction in the United States import duty on rugs can
be made under the authority of the Trade Agreements Act3 only in
1Neither printed.
246 Stat. 590, 649.
'Approved June 12, 1934; 48 Stat. 943.

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