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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

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

Page 594

ments of Yugoslavia and the United States to arrive at -a broad set-
tlement and one more strictly in accordance with the unconditional
most-favored-nation principle in respect of all forms of trade-control
  The following modifications are suggested:
  1. With respect to most of the controlled articles, quotas equal to
the amounts imported in 1935 would in general be satisfactory for
the proposed temporary arrangement. Since, however, a large num-
ber of minor items is involved, the imposition of a fixed quota on each
separate item would appear to be unduly inflexible. In some cases the
imports from the United States during the year 1935 are likely to
have been unusually large or unusually small as a result of conditions
of a purely temporary nature. The proposed system of quotas could
be made more flexible if it were provided that any unused amount of
the quota on any of the controlled articles in one quarter could be
used for imports of any of the controlled articles in the following
  2. The list of quotas attached to the memorandum which was pre-
sented by the Yugoslav Government does not indicate the amounts of
the quotas for certain minor items of which very small amounts were
imported from the United States in the year 1935, including: single
strand cotton yarn (tariff No. 274), cotton velvet, plush and similar
articles (tariff No. 278), cork products (tariff No. 439), thick silk
textiles (tariff No. 331-1), aluminum, wrought or rolled, (tariff No.
590). It is the understanding of this Government that these articles,
and some others, are included among the controlled articles. If this
understanding is correct, a single quota for all of the controlled articles
for which separate quotas have not been listed in the Yugoslav memo-
randum would be acceptable.
  3. The United States Government feels that, with respect to all
of the controlled articles except automobiles, the modifications sug-
gested above would be sufficient. In the event that there should be a
demand in Yugoslavia for a larger amount of imports from the United
States of any of the controlled articles (other than automobiles) than
was imported in 1935, the carry-over of unused quotas of other articles,
as provided for in the first modification, might be sufficient to satisfy
at least a part of such additional demand.
  With respect to automobiles, however, the case is different. Total
imports of automobiles, including trucks, into Yugoslavia, have
greatly increased since 1935. In view of this large increase, and
also in view of the fact that automobiles account for more than half
of the imports of controlled articles from the United States, the pro-
posal of the Yugoslav Government, even if modified as suggested in
numbered paragraph 1 above, cannot be considered as fully accept-

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