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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 576

654.113 Automobiles/26
  The Mini ter in Switzerland (farri8on) to the Secretary of State
No. 153                                 BERN, December 21, 1937.
                                      [Received January 4, 1938.J
  SIR: Referring to the Department's instruction No. 4140 of August
16, 1937, enclosing a copy of a letter dated August 9, 1937,20 from Mr.
Charles R. Weaver of the Automobile Manufacturers Association, of
Washington, D. C., concerning alleged inequality of treatment on the
part of the Swiss Government in the matter of automobiles shipped on
consignment, under bond, to dealers in Switzerland, and in further ref-
erence to my last report on this subject as set forth in my despatch No.
130 of December 8, 1937, I have the honor to enclose herewith a copy,
with English translation, of a note dated December 17, 1937,21 from
Dr. Hotz, Director of the Commercial Division of the Federal Depart-
ment of Public Economy, in reply to my informal note of October 12
last,21 a copy of which was enclosed with my despatch No. 65 of October
22, 1937. While maintaining the view that "the conventional most-
favored-nation clause does not apply to customs regulations covering
temporary importation for uncertain sale, the principle of reciprocity
being. mandatory for this kind of trade," Dr. Hotz in his reply informs
me that subject to cancellation "in case of imperious necessity,"
thorization has now been given to the customs bureaus to grant
pa&9avants valid for six months in favor of automobiles imported from
the United States into Switzerland for uncertain sale.
  Subsequent to the despatch of my last report in this case, Dr. Hotz
telephoned me and asked me to call upon him on Friday last, Decem-
ber 17, at the same time saying that he would have a favorable reply
for me in response to my letter of October 12, and that he also desired
to speak to me further with regard to the four percent tax on customs
receipts, with respect to. which I am reporting in a separate despatch
of this date.
  At our interview Dr. Hotz handed me his reply to read and then
stated that if, in practice, it should be found desirable to extend the
period for which passavants are to be valid, and if I were to bring
the matter to his personal attention, he felt confident that it would be
possible to make the necessary arrangements.
  Dr. Hotz went on to emphasize his personal desire to make our
commercial agreement an effective instrument for the enhancement
of our trade to our mutual advantage and benefit as also his intention
and wish to do his part in ensuring its successful operation. He had
been happy, he said, in finding in this instance also a willingness to
cooperate and a desire to accommodate on the part of the Direction
20 Neither printed.
2 Not printed.

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