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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 486

  With respect to the exception for Austrian preferences the wording
of the Department's suggestion is acceptable to the Italian authori-
ties upon the understanding that the word "now" includes lists
A and
B contained in my telegram No. 492 of November 29, 6 p. m.47a
  In order to prevent any possible subsequent misunderstanding with
respect to tariff preferences which have been exempted a memoran-
dum is being prepared by the Foreign Office relating to the wheat
revaluation agreement with Hungary which in the opinion of the
Italian Government does not constitute a preference. It desires, how-
ever, to bring the terms of the agreement to the attention of the Ameri-
can Government before concluding the treaty. It is hoped that this
memorandum can be forwarded by telegram tomorrow.
  Article 20. The Foreign Office states that the reasons which pre-
vent the extension of the treaty at this time to the Italian colonies
relate to the special regime at present existing in the Italian colonies
in all matters referring to entry and the exercise of commerce and
professions on the part of Italian nationals, as well as to the special
regulations and restrictions imposed upon the said nationals in the
exercise of maritime trade and other activities. Such regulations in-
volve a special procedure (corporative organization) which is applied
to nationals but which cannot be automatically extended to foreign
citizens. It is for the foregoing reason that the matter of extension
of commercial treaties to the colonies has been the subject of separate
agreements with other countries. The Italians state they would be
prepared subsequently to enter into negotiation for this separate
agreement but I am of the opinion that it would be difficult to en-
visage any negotiations referring specifically to the colonies which
would not raise the question of recognition of Ethiopia.
  The Temporary Arrangement. The Italian Government is now pre-
pared to reply accepting the proposal contained in the Department's
telegram No. 183 of November 27 but would greatly appreciate an
amendment of form, namely, that the third paragraph of the American
note be modified to read as follows: "It is agreed that while on its
part the Government of Italy will in fact apply the provisions of
article 8 of the proposed new treaty on and after December 15, 1937,
the Government of the United States will on its part continue to
accord . . ." If this suggestion is acceptable to the Department the
Italian Government would like to proceed to a formal exchange of
notes before Wednesday of next week.
  With respect to the preamble Count Ciano has been absent from
Rome for the last few days in the company of the Yugoslav Prime
Minister and it will not be possible to discuss the preamble with him
until Monday at the earliest when I have requested an appointment.
47a Not printed.

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