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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

United Kingdom ,   pp. 1-135 PDF (51.1 MB)

Page 56

pose to name a figure lower than 10%o which, as the United States
Government are aware, is the level of the General ad valorem duty.
But in the special circumstances the U.K. Government might in this
particular case, be prepared to agree to a somewhat lower figure. So
long ago as June 1935 the United States Government together with
other Governments interested, was informed of our proposal to im-
pose a levy on imported bacon and hams. This proposal was not
brought into force at the time only because it required the consent of
certain countries having the right of free entry.
  (2) (a) The United States proposal raises great practical difficulties
but the U.K. Government are prepared in principle to establish a
separate quota for hams. They could not undertake to extend this
treatment to shoulders which, they are informed, are normally cured
as bacon and are always entered as bacon for British Customs pur-
poses. Apart from questions of Customs definition there is the diffi-
culty that there would be no statistics of imports of shoulders upon
which any separate quota could be based. In the last 2 years United
Kingdom imports of bacon from the United States have been less than
3%o of total United Kingdom imports of bacon and hams from the
United States of America so that it does not appear that the point
can be of much practical importance.
    (b) The U.K. Government would be prepared, in principle, to
accord to the United States a percentage of the quota for hams based
on past imports. The proposal to guarantee a specific percentage,
however, affects the rights of certain foreign countries with which
trade agreements have been made: the Swedish Agreement ' con-
tains an undertaking by the United Kingdom Government not to guar-
antee to any country other than Denmark a percentage of imports
of bacon and hams, and the Danish and Polish Agreements 72 contain
guarantees applying to bacon and hams taken together. It will be
necessary to agree with these countries modifications of the guarantees
given to them before any guarantee can be given to the United States,
but no insuperable difficulty is anticipated from this.
    (c) The request for a minimum quantitative guarantee raises seri-
ous difficulties. At present hams are included in the general bacon
scheme under which imports from foreign countries are adjusted to
the general supply position, after taking into account home production
and imports from Empire countries. A minimum guarantee to the
United States of America in regard to hams might in certain circum-
stances involve a progressive increase of imports with serious effects
on the market. The U.K. Government would, however, be prepared
to discuss this question with the United States delegates during the
  (3) The U.K. Government would also be prepared to undertake
not to impose any quantitative restriction on imports of lard from
U. S. They would also be prepared to give an undertaking not to
increase the present amount of duty (probably in the form of a specific
duty, and possibly to offer some reduction on a specific basis).
  'Agreement with Sweden, signed May 15, 1933, League of Nations Treaty
Series, vol. CXL., p. 317, and amended May 27/June 15, 1935, ibid., vol.
CLX, p. 422.
12 Agreement with Denmark, signed April 24, 1933, ibid., vol. Cxxxix, p.
127; Stup-
plementary agreement, June 19, 1936, ibid., vol. CLXXVII, p. 421. Agreement
Poland, signed February 27, 1935, ibid., vol. CLxII, p. 181.

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