Evening star., 1933-12-18
.RUM-FRU|T QUOTA
CONFERENCE TODAY
Phillips and French Attache
to Discuss Question of
License Taxes.
BY CONSTANTINE BROWN.

Acting Secretary of State william
Phillips expressed today the hope that
the question Of the French licensing
taxes on American products to be ex-
ported against an increase of the quota
on French wines will be satisfactorily
settled soon.
The French commercial attache
Maurice Garreau-Dombasle, is expected
in Washington in the course of the day,
when he will discuss the matter with the
Acting Secretary of State. the assistant
economic adviser, Frederick Livesey, and
representatives Of the Department of
Agriculture.
In the meantime, the American en-
bassy in Paris has sent complete re-
port on the whole situation, which ap-
pears to be as follows.
The French government has obtained
a quota Of some 765, 900 gallons Of wines
and spirits to be imported into the
United States, on the basis of the
French imports for the years 19l0-1914.
Higher Fruit Quota Asked.
The French government, pressed by
the wine growers and distillers of
France, asked for an increased quota
of a little over 100000 gallons
The administration replied that this
government increases the import quota
into France for American apples, pears
and lard
The French agreed. but the French
Ambassador in Washington. Andre de
Laboulaye, drew the departments at
tention to the fact that in order to in
crease Its revenue, the French govern
nent had decided to place a special
tax on import licenses. Although the
wi foy
by the importers, they would neces-
Sarily affect the fruit trade, since the
importer would probably be compelled
to increase his prices and thus make
the consumer pay.
1t was not certain at first as to how
these licenses would be taxed.
The original idea of the French was
to auction them of to the highes.
were likely to have a greater consum-
ing attraction would obtain a higher
price, while others would yield a small
er profit
This system, however, was discarded
and replaced by direct tax. which
while not discriminating against Amer
lcan products does affect seriously the
imports Of the American apples and
pears into France. 1t is only natural
that when the importer has to pay
high price for an importing license.
he Will have to pass that amount On
to the consumer. and under the present
difficult economic conditions in France
that increase will result in a decrease
in consumption of American fruits.
Informed Of License System.
This, 1t is asserted. nullifies COM
pletely the concession the French gov
ernment has made in regard to the
raising of the quota on these special
American imports.
The State Department has been ind
formed about this licensing system at
the time when the French asked for an
increase of their wine quota But it
was supposed that the new taxes will
not be sufficiently important to actually
hamper the increased quota Of American
fruits
Negotiations are now in progress both
in Washington and in Paris for an
amicable settlement of the whole ques-
ton. 1t is said that the demand for
apples and pears in France is sufficiently
great to induce the importer to pay the
alleged high price for the. import
licenses and still make q substantial
profit. On the other hand. the demand
for wines since repeal has been so
great that the administration is in
clined to be as compromising as possible
with the French.