611.5731/78

Memorandum by the Assistant Secretary of State (Sayre)

The Norwegian Minister called to see me this morning to ask whether there was a likelihood of the United States opening up tariff bargaining negotiations with his Government during the summer months. I informed the Minister that our first task was to build up an organization and make the necessary preliminary studies before we could enter into active negotiations, and that therefore there seemed very little likelihood of our being prepared to commence negotiations with his Government during the coming summer.

Mr. Morgenstierne next brought up the question concerning the imposition of a tax on whale oil under Section 602 of the Revenue Act of 1934.7 The Minister informed me that the effect of the tax [Page 647] would be a total cessation of imports of whale oil into the United States and that, even if the President, under the tariff bargaining bill, should reduce the whale oil duty by fifty per cent, it would still be prohibitive. He asked whether anything could be done. I informed him that the State Department had sought to prevent the imposition of the tax but had not been able to prevent the legislation and that, inasmuch as Congress has now adjourned and since Congress has exclusive power with regard to the matter, I could see nothing that could be done. Mr. Morgenstierne asked whether it would be possible to get the President to recommend reconsideration of this matter by the Congressional Committee which he asked to reconsider the tax on cocoanut oil in connection with the Philippines. I told Mr. Morgenstierne that I did not see how this could be done. Mr. Morgenstierne said that he was under instructions from his Government to inquire whether it would be possible to secure any relief because if Norway is prevented from importing whale oil into the United States it will thereby be correspondingly prevented from buying American goods with the proceeds ordinarily received from its sale of whale oil. I suggested that he write me a note setting forth these matters to which we could send a formal reply.

F[ranges] B. S[ayre]
  1. 48 Stat. 680, 762.