The New York herald., 1921-07-07

Special Gable to THE New YORK HnaMp.
Copyright, 1921, By THE New York HERALD.
New York Herald Bureau.
Paris, July 9.
Instructions were forwarded by the
French Government to-day directing
Ambassador Jusserand at Washington
to make an emphatic protest against
the clause in the new American tariff
act providing for the inspection of the
books of French exporters by author
lied American agents. This was placed
in the act for the announced pur-
pose Of aiding the American Govern
ment in fixing the amount of ad va
lorem duties to be collected by the
United States upon goods originating
in France, but it has stirred the wrath
of French business men, and they are
making it plain that they will not
consent to have their books examined
in this way.
The storm Of protest broke full force
yesterday when the Paris Chamber of
orally as an investigating body on
whose decisions the Ministry of Com
merces attitude is almost invariably
based) adopted unanimously report
attacking the tariff provision.
! NJ. Pascalis. president OF the Cham
Der of Commerce, following the formal
action of that body. informed THE NEW
YORK HERALD correspondent that under
no consideration would French manu-
facturers and merchants ever permit
such an intrusion upon their personal
! liberty
Not the First offence.
TT is not the first time that such a
proposal has been advanced from the
other side Of the Atlantic" he said, land
/. appears as though the Americans in
tended to present us with fait ac-
compli. 1t seems strange that we have
never been asked to give our opinion on
such an important matter"
The situation developed so seriously
over night that this afternoon the
American Chamber Of Commerce found
i. too delicate for immediate action.
The matter was referred to special
tax committee. In the discussion. 1t was
brought out, however, that 1t would be
virtually impossible to induce the
French exporters to consent to the pro-
posed inspection of their books, and
there was a general belief that the law
would have to be modified. One of the
suggestions advanced was that proper
safeguards to American merchants
might be assured II the French would
permit public accountants to go over the
books.
An indication of the degree to which
the French are perturbed appeared in
statements of leading exporters that
not even to the French Government, ex-
cept In extreme cases. do they permit
outside agents to study their ledger ac
counts. The imputation that strikes
home. however. Is that the proposed
American scheme was intended, IN the
minds of the American trainers of the
law. to prevent fraud. The French ex-
porters express a complete willingness
to supply to the United States Treasury
agents all the information that Is neces-
sary to fixation of the ad valorem du-
ties. but they wish to do this voluntarily
and in their own way.
Instruction Sent to Jusserand.
Copies of the resolutions adopted by
the Paris Chamber of Commerce were
furnished to the Ministries of Foreign
Affairs and Commerce, with the result
that the French Government lost no time
in Issuing Its instructions to Ambass
Jusserand.
President Pascalis said that neither
the French Chamber Of Commerce nor
any of the important French exporting
firms had been consulted as to the prac-
tice proposed in the American tariff act,
"Of course America always has the
right to arrange its tariff wall a. II
thinks best" said NJ. Pascalis but we
have a right to refuse TO allow Washing
ton agents to enter our shops and fac
tories and insist that we reveal all our
records. 1t would be not only an attack
upon our personal rights. but also a
serious contravention OF our sovereignty
to which no Frenchman ever will be
willing TO accede."
Asked whether the high protective
tariff of America is in itself a subject
OF much opposition in view of the fact
that France already, as is admitted in
last nights Temps. has increased vari-
Gus import eoefficlents 10 point where
pre-war duties on woollens are quad
rupled on cotton and linen cloth quin-
tupled, and on various machines has
been raised as high as fourfold, NJ.
Pascalis said II was evidently not the
best solution.
Envors MutuoI Cameo sssou.