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United States Department of State / Foreign relations of the United States diplomatic papers, 1937. The British Commonwealth, Europe, Near East and Africa

Australia,   pp. 136-159 PDF (9.0 MB)

Page 157

expect equality of treatment in tariff rates. He added, however, that
the question of negotiating with Australia would be made more com-
plicated if Australia should indulge in "tariff padding on items of
terest to the United States." See Department's telegram of Febru-
ary 12, 1937, and if you see no objection, or if an opening presents
itself, you might say that we have at all times stood ready to conclude
a modus vivendi with Australia with mutual guarantees of most-
favored-nation treatment.
  (5) If Australian officials should contend that the United States is
now interpreting more strictly in the case of Australia than of some
other countries what constitutes discriminatory treatment of Ameri-
can goods, you could use the following explanation: once the President
has found that single or combined discriminations are so flagrant
as to leave him no alternative than to withdraw most-favored-nation
treatment, a reversal of his official declaration cannot be predicated on
half measures. In the case of those countries whose discriminations
have not been the cause of Presidential action, we are not called upon
officially to define their treatment of American goods until that treat-
ment becomes so flagrant as to make Presidential action necessary.
811.4731/252: Telegram
The Consul General at Sydney (Wilson) to the Secretary of State
                               SYDNEY, December 23, 1937-5 p. m.
                             [Received December 23-8: 30 a. mi.
  Referring to Department's telegram of December 17, 7 p. m. I spent
Monday in Canberra and had an interview lasting about an hour
with the Prime Minister, spending the rest of the day with Moore.
  The Department's telegram of December 17, 7 p. m. presents an
interpretation of the present situation vis-a-vis Australia which is
at variance with my own and with that given me in Canberra on the
occasions of both of my visits (refer to my telegram of December 9,
9 p. m.). The following comments are grouped under the five points
of the Department's telegram of December 17, 7 p. m. and should be
considered in conjunction therewith.
  1. Despite impressions gained by the Department from Lindsay
and Officer the Australian Government does ask and expect the Gov-
ernment of the United States: (firstly) to accept what Australia has
done and is doing to remove discrimination as sufficient evidence of
good faith without further proof; (secondly) to differentiate between
"substantial" discrimination and what they contend is now only
"technical or actual" discrimination, and to agree to their contention
that substantial discrimination no longer exists; and (thirdly) to
enter into informal discussions simultaneously with any discussions

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