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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 437

in connection with renewal of the trade agreements act, but we expect
shortly to forward instructions in this regard. In this connection, it
should be noted that the Italian proposal has been in the Department
only since the first of January whereas the Italian Government did
not reply to our proposal until the expiration of over 2 months.
  From a tactical standpoint, we do not deem it feasible or practicable
to give any indication of the Department's impression of the Italian
treaty or trade agreement proposals as a whole. With regard to the
Italian suggestions looking to a trade agreement transmitted with
your despatch No. 129 of December 21, 1936,8 it was not the Depart-
ment's understanding that any expression of opinion by the Depart-
ment was required and therefore no adequate study of the Italian sug-
gestion to that end has so far been made here.
  You are authorized to use any of the foregoing in your conversations
with the Italian authorities.
   The Secretary of State to the Amba88ador in Italy (Phillips)
No. 56                              WASHINGTON, March 17, 1937.
  SIR: Reference is made to the Italian draft of the proposed new
Treaty of Friendship, Commerce and Navigation enclosed with your
despatch No. 126 of December 18, 1936, and to your despatch No. 129
of December 21, 1936,9 enclosing a draft of proposed trade agreement.
  We concur with your view that apparently one of Italy's principal
interests in treaty negotiations is in laying the foundation for a trade
agreement to which it attaches more immediate importance than to
the commercial treaty; and we are pleased to note that, nevertheless,
the Italian delegation has agreed to the principle that commercial
treaty negotiations shall precede trade agreement negotiations and be
conducted apart therefrom. In view of this and the fact that the
fundamental principles upon which we hope to base our commercial
relations with Italy are those expressed in Article VIII of the pro-
posed commercial treaty, we deem it of first importance, as indicated
in my telegram No. 16 of February 17, 1937, to reach a satisfactory
agreement in respect of that article. Accordingly, a redraft of Ar-
ticle VIII, with the exception of the paragraph relating to exchange
which will be forwarded to you as soon as possible, has been prepared
and is enclosed herewith for presentation to the Italian Government.
  In presenting the draft you may say that study is being given to
the other articles of the Italian proposal, but that because of the im-
  'Not printed.
  "Neither printed.

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