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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

Italy,   pp. 435-506 PDF (27.1 MB)

Page 436

711.652/85: Telegram
  The Secretary of State to the Anmbasador in Italy (Phillips)
                          WASHINGTON, February 17,1937-1 p. m.
  16. Your 50, February 8, 1937. The Department regrets that there
should be any misapprehension on the part of the Italian Government
in regard to our intentions in connection with the negotiations for the
Treaty of Friendship, Commerce and Navigation. There is no desire
whatsoever on our part to delay proceedings and Mr. Sayre6 so in-
formed the Italian Ambassador on February 1st, adding that he hoped
that negotiations might be concluded in time to permit the new treaty
to be submitted to the Senate before Congress adjourned next summer.
  The report to which you refer may have had its origin in a despatch
from Ambassador Suvich to his Government with respect to Mr.
Sayre's testimony before the House Ways and Means Committee when
extension of the trade agreements act 7 was under consideration to the
effect that negotiations with Italy were inactive. Suvich on instruc-
tions from his Government called on Mr. Sayre about this February
1, 1937, and Mr. Sayre explained to him that his testimony had refer-
ence to trade agreement negotiations and not to treaty negotiations,
that we were anxious to go ahead with treaty negotiations, and that
we expected to make a counter proposal within the near future.
  We feel that as we are now in process of negotiating a basic treaty,
we should confine our efforts to those negotiations. You should, there-
fore, discourage any discussion of the trade agreement. We are
anxious to reach an understanding with regard to the fundamental
principles underlying the regulation of Italo-American trade and in
attaining this end, it becomes of first importance that we reach a
satisfactory agreement in respect of Article 8 of the proposed treaty.
  Far from being indifferent to the substitution of new arrangements
for the present treaty, this Government is anxious to work out such
arrangements well ahead of the time when the old treaty shall ter-
minate when this Government might find itself under the necessity
of suspending the generalization of our trade agreement concessions
to Italian products. Moreover, since the success of trade agreement
negotiations will depend upon the extent to which the commercial
policies of the two countries can be reconciled, successful negotiations
for the new commercial treaty will pave the way for effective trade
agreement negotiations.
  A decision with reference to a counter proposal to the Italian draft
of Article VIII has been somewhat delayed on account of extra work
  6 Francis B. Sayre, Assistant Secretary of State.
  7 The Trade Agreements Act of June 12, 1934, was extended by Joint Resolu-
tion, March 1, 1937; 50 Stat. 24.

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