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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
(1937)

Yugoslavia,   pp. 584-595 ff. PDF (4.3 MB)


Page 588


FOREIGN RELATIONS, 1937, VOLUME n
O11.6OH31/47
     The Yugoslav Minister (Fotitch) to the Secretary of State
                                       WASHINGTON, April 6, 1937.
  Mr. SECRETARY: With reference to your letter of December 17, 1936,
I have the honor to transmit to Your Excellency, by the order of my
Government, two alternative proposals for the regulation of our
commercial relations.
  The Royal Government has given detailed consideration to the view
expressed in the abovementioned letter and by its present proposal,
desires to meet, to the utmost, the proposals made for the regulation
of that part of American exports into Yugoslavia which is limited
by the recent regulations regarding the control of imports and which
my Government had to adopt reluctantly, owing to the general eco-
nomic situation in Central Europe. The Royal Government is making
this proposal, (in spite of the fact that for the national economy it
represents a great effort) in order to maintain the application of the
most favored nation clause in our mutual relations, which corresponds
also to the policy of the United States and is the basis on which the
economic relations could be developed and improved.
  I avail myself [etc.]                     CONSTANTIN FoTmcn
                            [Enclosure]
Yugoslav Proposals for the Regulation of Commercial Relations
           Between the United States and Yugoslavia
  1) The importation of controlled articles from the United States
would have to be adjusted in relation to a percentage established in the
year 1935, that being the last year before the control of importation
was put into effect and in which year the entire importation of con-
trolled articles from the United States into Yugoslavia amounted
to 30,920,000 dinars. We are willing to accord also to the United
States the same treatment as we did to England (with whom our
situation was more favorable), that is to say 50%o of the importa-
tion of the controlled articles in 1935, which means that we would
import in this year the above mentioned articles to the amount of 15.5
million dinars. The system which was accorded to England could
be retained in this instance, i. e. to permit to every importer of the
controlled articles from the United States an importation to the
extent of 50% of his importation of the same article in 1935.
  This system excludes compensations, i. e. the necessity that the
importers of American articles should find exporters of our products.
According to this plan, this system is very much simplified. It has,
however, the drawback for us that it might, in case of a disadvanta.-
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