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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

Estonia,   pp. 259-274 PDF (5.6 MB)

Page 263

balance which that country has encountered in its commercial inter-
change with the United States, a trend toward a more equalized trade
occurred in 1936 when Estonian shipments to the United States were
exceeded in value by American imports by $1,050,000 as contrasted
with $1,310,000 in 1935. This condition was due to a combination of
circumstances: an appreciable increase in American purchases of
Estonian products (40.3%o in relation with those for 1935), and a per-
ceptible tightening of exchange and import license restrictions for
goods of United States origin, total Estonian imports from all coun-
tries in 1936 having increased by 26.3% in comparison with those
for the previous year whereas United States exports to Estonia rose
but 1.7%o.
  Considering that Estonia has been fairly successful in keeping
down imports from the United States while her exports to it have
augmented appreciably; that the Estonian Government realizes the
"'most favored nation" clause would no longer be applicable to
chandise of Estonian origin after the termination of the present
Treaty and as a consequence [the] United States might raise the
import duties on Estonian products by 50%o; and that the Legation
has been informally approached relative to Estonia's desire to effect
a substantial decrease in the war debt services owing in the United
States now in default,10 it is possible that the Estonian Government
may not be as anxious, as was the case during 1935 and 1936, to ter-
minate the Treaty with the United States, and that it may therefore
be possible to bring about some adjustment of this matter before May
22, 1937.
  The Department's instructions are respectfully requested.
  Respectfully yours,                        ARTHUR BLISS LANE
611.60131/53: Telegram
     The Minister in Estonia (Lane) to the Secretary of State
                                 TALLINN, March 17, 1937-2 p. m.
                                     [Received March 20-7 a. mJ.
  3. Department's instruction No. 10, February 16. Note presented
to Minister of Foreign Affairs on March 15 and oral statement made
pursuant to instructions. From conversation with him, Rei,1" Wirgo,
and Selter,u2 we understand Estonian point of view to be substan-
tially as follows:
  (1) Estonia is prepared to negotiate trade agreement provided the
general provisions thereof approximate those of our trade agreement
10 See vol. i, pp. 847-848.
n August Re!, Estonian Assistant Minister for Foreign Affairs.
" Karl Selter, Estonian Minister of Economic Affairs.

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