811.114 Liquor/762: Telegram

The Acting Secretary of State to the Ambassador in France (Straus)

355. Your 645, August 30, 5 p.m. We are delighted that you have found an opportunity to put pressure upon the French, particularly in the matter of the turnover tax.

We have been in touch with Federal Alcohol Control Administration this morning. As far as the regulations concerning geographic names for brandy and spirits is concerned, there is nothing to be done as the orders have been promulgated and are in effect. In so far, however, as wines are concerned, the regulations relating (1) to standards of identity and quality for wine, (2) to standards of fill for wine, and (3) to the labeling of wine, have only been tentatively drafted and are to be discussed at two hearings, the first now being held in California, the second scheduled to be held at Washington on September 17. In practice it takes approximately 2 weeks after the hearings for the evidence presented to be sifted and acted upon. There is no doubt but that there is considerable opposition on behalf of the wine growers in California, New York and Ohio, who feel that their rights vis-à-vis the importers are not being sufficiently preserved. There is reason to assume that this point of view will have to be given careful consideration.

Following these hearings the Federal Alcohol Control Administration will draw up in a more definite form the regulations in question but has undertaken not to promulgate these without a careful study with the State Department of their effect on our trade with foreign countries.

I may add confidentially that in this study the attitude of the State Department will undoubtedly be more favorable if a quid pro quo can be shown.

Texts of regulations forwarded by pouch August 28th.53

Phillips
  1. Instruction No. 544, not printed.