Evening star., 1927-10-03
FRENCH NOTE HITS
US. TARIFF RATES
AS ''PROH|B|T|VE"
Text Shows Purpose of Prov
ina American Imposts
Unfair to France.
WASHINGTON REFUSES
TO PROMISE RATE CUT
Study of Production Costs Must
precede Revision, Reply
Declares. 49,

.
While the most recent French tariff
note is viewed by administration Off
cials as conciliatory and perhaps open
,np the way to settlement of the pres
ont dispute. text of the first two notes
exchanged shows that the French
Guns have been trained directly on
American tariff rates from the time
the Franco German commercial treaty
was signed. ,,
these notes were made public ST.
nultaneously today in Washington anu
Paris. to be followed later by the cur
rent chapter in the interchange the
French note received Saturday. The
American reply is now being formu.
lated and is expected to go forward
late this week.
The conciliatory character OF the
French note became more apparent
when the State Department r1aoe pun
liz the communication without await
ing corrections on portions OF the teAt
possibly garbled in TRANSMISSION.
Gist of French Note.
The cist of the French note lies IN
,.s reference to section 3l5A or the
American tariff act, which authorlZes
the President to change statutory au'
ties 10 meet larger costs OF productlon
abroad.
1.-The French government wishes TO
erlphasize," the note states, that II
is not q question of engaging In tar1Il
bargaining negotiations; 1t IS oniy
question in exchange for the particu-
lnrIy favorable regime OF the trench
minimum tariff of obtaining for certain
articles Of French exportatlon a less
prohibitive tariff incidence than tna1
to which they are subject at the pres,
ent time by a rectihcatlon eHecteo
conformably to section 3l5A OF the
compensatory duties, which upon ero'
neous data the American Government
has felt that it must establish, and or
revising in such measure as may seem
equitable the provisions of those reg
ula tions dealing with the application
of tariffs or with the preservation Oh
national hygiene, which at the present
moment results in an absolute prohibl'
ton in fact for certain trench
products.
The note adds that the French gov
ernment must make dependent the
grant to America of the most-favored
regime which France grants to other
"a
the modification France has suggested
as to American tariff practice.
View of Washington.
Washington officials regard this
section of the new French note as a
wholly different conception of the
situation than that expressed in the
original French refusal OF most
differentiation treaty negotiations ana
the counter proposal for negotiations
on the basis of tariff reciprocity.
The latest French note admits that
the Washington Government cannot
by law engage in customs rate bar
gaining, and if the French authorities
are satisfied with the limited action
that can be taken by the President
under section 315, it is prepared to
enter treaty negotiations on that
basis, but without binding itself to 90
more than to investigate costs OF the
French products involved and to
make such changes in tariff rates on
those goods as the Investigations war
rant, whether the rates go up or down
as a result.
Examination of the first French
note shows the new suggestion Is a
wide departure from the original
treaty to include, if necessary. such
reductions or adaptations of the (Amer'
ican) tariff as would permit certain
unnamed French goods to enter the
American market. In reply the State
Department implied surprise that the
French government did not know that
the American tariff law does not en-.
visage the conclusion OF treaty OF
reciprocity in regard to rates of duty.
While the French tariff carried
three-column system. the maxi
mum of which is now applied to Amer
lean goods involved in the dispute, for
thu specific purpose of treaty bargain
ing on rates, the American note said,
American laws "embody no such mar.
gin for bargaining" and the proposal
for general INSTRUMENTATION rela-
tions was reiterated as the best way
OF solving the problem.
Texts of Notes.
The following is the aide-memoire
delivered on September IA by the
French Foreoign Office to the Ameri.
can Charge d'Affaires in Paris:
The French government has noted
the proposals and requests contained
in the aide-memoire which the first
secretary of the embassy of the
United States was good enough to for
ward to the political director Of the
ministry for foreign affairs 'on Sep
tember Z.
The French government has con.
s.dered, with the most cordial desire
10 do justice to American interests,
the situation arising from the tariff
reform of August 80, 1927.
1T does not intend to deny that this
reform implies as regards certain
products originating in and coming
from the United States which are not
included in lists A and B Of the modus
vivendi of March-April, 1910, an aug
mentation resulting both from the in
crease Of basic duties and the with
drawal Of the benefits which Article
OF the decree of August 28, 1921, as
sured to the said products.
But it has appeared to the French
government that the benefits assured
by this decree as to American prod
iIcts without any contractual obliga
ticn constituted a measure motivateC
in 1921 by exceptional circumstances
and particularly by the monetary posi-
ton of certain European states tc
which other states had taken excep
tion or had claimed the benefit Of these
advantages, and that, finally, the eX
ceptional treatment which they i'm
plied for the United States was no
In harmony with the constant increase
in the American tariffs and the rein
forcement OF customs barriers prac
ticed by America since that time x
the detriment Of certain specific prod
acts Of the French trade.
"Tha French government has, there
hpre, deemed that It should return
bn the occasion Of the customs reform
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