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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

Switzerland,   pp. 565-582 PDF (6.6 MB)

Page 574

tember 19, 1936, from the Swiss Federal Department of Public Econ-
omy,l8b it is believed that the Department's position is adequately ex-
pressed on the formal record of this case. The Department desires,
however, to obtain confirmation of its understanding that the tax will
lapse at the end of the present calendar year. You are therefore
requested to bring the Department's position and views in the matter,
as expressed in this instruction, informally to the attention of the
appropriate Swiss authorities on an early occasion with a view to
obtaining assurances that the tax will lapse, in so far as it is in Conflict
with the terms of the trade agreement, at the close of the present
calendar year.
  Very truly yours,                    For the Secretary of State:
                                                FR.ANoIs B. SAYRFE
654.113 Automobules/24: Telegram
The Secretary of State to the Minister in Switzerland (Harrison)
                           WASHINGTON, November 17, 1937-4 p. m.
  70. Despatch 65 of October 28 [22]. The Department considers
that the words "rules, formalities and charges imposed in connection
with the clearing of goods through the customs" in paragraph 1, and
the whole of paragraphs 2 and 4, of Article X are definitely applicable
to this case. In particular, it cannot admit Hausermann's contention
that the above quoted clause applies only to formalities and charges
imposed "at the time of customs clearance." The Department regards
the Swiss position as being inconsistent with not only the broad pur-
poses of the most-favored-nation clause, but the specific language of
the agreement as welL
  The Department also considered Article X applicable to the tractor
case (despatch 4513 of August 8, 1936 19) but saw no purpose in then
pressing its interpretation as satisfaction had already been granted
the American interests involved. While desiring not to prejudice
the efforts already made by you to settle the present case, the Depart-
ment wishes you to make its views clear to the competent Swiss author-
ities in whatever manner you deem most advisable. Should the reply
to your letter of October 12 to Hotz'9 be unfavorable you should
urgently request reconsideration on the basis of the Department's
opinion as to the applicability of Article X.
 18b Foreign Relations, 1936, vol. ii, p. 813.
 1Not printed.

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