Evening star., 1933-12-23
FAVORED NATION
PACT LIMITS SET
Do Not Apply in Fixing Of
Liquor Quotas, Germany
Is Informed.
Rv the Associated Press.

BY the Associated PreSS.
Neither Germany nor any other
country which has a most favored
nation" treaty with the United States
can expect that pact to influence allot-
ments now being made for shipments of
liquor to America.
That was made clear by State De-
partment officials when the point was
raised late yesterday by Germany
There had been no indication today of
change in the United States view
point.
The explanation advanced by the
Inter Government Committee studying
the liquor problem is that prohibition
repeal brought up special problems not
contemplated when some of the trade
treaties were drawn. Consequently, ex-
isting agreements cannot be considered
in current negotiations. These most
favored nation" pactS, however, may
come up for study in subsequent nego-
tiations for reciprocal treaties like that
the United States already has signed
with Colombia.
Undue Delay Is Seen.
The close analysis required in detailed
talks about treaties like Germany's. it
was added, would unduly prolong nego-
!
considers liquor importations a prob
lem needing prompt solution because of
domestic difficulties-one being that OF
supplying sufficient liquor at low
enough prices to discourage bootleggers.
Germany's question was presented by
Ernst Wilhelm Meyer, first secretary OF
his nations embassy, while the Inter-
Government Committee continued its
hearings of countries which seek per-
mission to ship more liquor into the
United States in return for agreements
to use larger quantities OF American
produce.
Thirty nations already have been
heard by the committee A deal was
near completion under which Greece
would be granted several times its
initial quota of $4,000 gallons OF wine
in exchange for admitting American
rice of equal value.
Panama asks to trade whisky and
| rum for American commodities; Poland
may get authority to swap various cor
dials and sweet wine for American
apples and prunes.
And next week the committee VIII
meet with several other smaller nations
which were not granted liquor import
quotas In the initial order.
! A warning that the Justice Depart
| ment would be asked to go into acton
/ against any one obtaining liquor import
permits through false representation:
was issued yesterday by Joseph Ii
! Choate, jr., director of the Federa
Alcohol Control Administration.
( Choate said that complaints had peer
received that holders of permits "havt
! been peddling them about, Offering L
sell them. or to transfer the dement's;
He added that the permits. whlcr
are on-transferable. were granted ol
! the basis Of the reasonable and leglti'
mate trade needs Of the applicant a.
/ the importers marketing agceemeilt aIle an
! the importers license from the Secre
tary of Agriculture provides.
Hints Plea Falsity.
"The attempt to sell a permit" NJ
continued, ''iS at least prima facie evil
dence that when the applicant sWor,
; that he needed the stated amounts II
| his business as an importer, his state
ment was false.
II have been advised that the furnish
| ing of false or misleading informatlo'
! as the basis for the issuance of ar
! entry permit constitutes violation o.
the aforesaid marketing agreement ant
| license. for which the said permit may
he revoked and the permittee!
license to do business as an importe'
NAV be revoked by the Secretary o.
Agriculture.
| "Since every permit improperly OBJ
| tanned cuts down the amounts avail
| able to all other applicants for tn'
honest needs of their business, 1t Il
clear that every permit shown to have
been obtained by misrepresentation
! should be revoked.
1T should also be noted that thf
QUESTIONABLE answered by all appli
cants for entry permits specif1call,
| states:
Future allotments will be gov,
erned by the disposition of your first
| allowance
Choate pledged literal application
NJ this rule in considering new appn
cations for entry permits from present
holders who dispose of imported liquol
otherwise than by meeting tnell
ressonable and legitimate trade needs.
|