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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

Germany,   pp. 319-405 PDF (32.6 MB)

Page 340

and which now exercised pressure for the purpose of satisfying their
capital demands out of the German export surplus. It was under this
pressure that the clearing agreements originated which resulted in
binding those amounts which Germany had formerly been able to use
for making purchases in countries with which it had an unfavorable
trade balance, as for instance the United States. The systems of
quotas, which are to-day universally applied, of clearings, compensa-
tion etc. were not invented by Germany but were forced upon her.
The German Government is entirely willing to adjust its trade policy
to the principle of free exchange of goods as soon as the necessary
pre-requisites have been established in the other parts of the world,
namely, within the field of general currency stabilization, solution of
the debt problem, and equal access to raw materials. The pre-requi-
sites cannot be produced by Germany in her present financial and
economic situation. They must be brought about by those States that
have disturbed the equilibrium within the other spheres.
  II. The German Government regrets that the United States up to
now has not seen its way to co-operate in finding an interim solution
which would have furnished a practical contribution to the realiza-
tion of its repeatedly-declared intention of increasing international ex-
change of goods.
  With regard to the statement in the Aide-Mermoire that equal op-
portunity is granted in the United States to the trade of other coun-
tries, provided these countries, on their part, do not discriminate
against the United States, the German Government calls attention to
the fact that Germany does not discriminate against the United States.
Germany is ready and willing to accord to the United States the
same favorable treatment as it does to any other country. Moreover,
with respect to the allotment of free foreign exchange Germany, even
now, and almost throughout, accords to the United States more favor-
able treatment than to other countries.
  On the other hand, however, Germany considers itself discrimi-
nated against by the United States. The United States grants most
favored nation treatment to certain other countries which likewise im-
pose restrictions upon their imports and payments abroad; and these
countries, on their part, have not been obliged to bind themselves to
an unlimited application of the principle of most favored nation treat-
ment insofar as it refers to the allotment of foreign exchange within
a percentage of a representative period. The German Government
cannot comprehend why the United States, only in its relation to Ger-
many, makes the granting of most favored nation treatment depend-
ent upon Germany's putting this principle into effect at once and with-
out restriction.

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