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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 441

  The Italian proposal accepts in general the proposition that ex-
change control shall be administered so as to insure fair and equitable
treatment in the allotment of exchange. But in lieu of our provision
which sets up the basis for allotment, the Italian proposal provides
that if either Party considers that exchange restrictions may damage
its interests as compared with the manner in which interests of third
countries are treated, "it may demand the initiation of conversations
in order to agree upon suitable measures to insure the transfer of sums
paid by purchasers as the price of its importations effected within the
agreed upon limits." Judging from the character of Italy's recent
commercial agreements with other countries and from the background
of trade agreement negotiations, the wording of this provision seems
clearly to envisage the negotiation of agreements or arrangements
which would have as their objective the balancing of trade between the
two countries. Considering the present policy of this Government,
it seems clear that we could not agree to a definitive treaty provision
which would permit the conduct of commercial relations upon the
basis of this principle.
711.652/89: Telegram
  The Ama88ador in Itally (Phillip8) to, the Secretary of State
                                    ROMiE, April 24, 1937-4 p. m.
                                    [Received April 24-3: 40 p. m.]
  180. Department's instruction 56, of March 17. The Director Gen-
eral of Commercial Affairs in the Foreign Office has informed me
this morning that after giving very careful study to the redraft of
article VIII of the proposed treaty of commerce the Italian authorities
have reached the conclusion that it is impossible for them to resume
discussions in regard thereto until the paragraph relating to exchange
can be received and the article considered as a whole. It was also
said that it would likewise be preferable to have the American sug-
gestions regarding remaining articles of the proposed treaty.
  The Foreign Office emphasized that it was anxious to expedite the
treaty negotiations and therefore hoped it would be possible to receive
these texts as soon as possible.
711.652/82: Telegram
  The Secretary of State to the Amrba88ador in Italy (Phillip8)
                                 WASHINGTON, May 1, 1937-11 a. m.
  73. Department's instruction No. 56 of March 17, 1937. Our coun-
ter proposal relating to foreign exchange is embodied in the following

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