711.652/56
Memorandum by the Assistant Chief of the Division of Western European Affairs (Culbertson)
Mr. Sayre asked Ambassador Rosso to come in this morning in order that he might discuss with him the question of eliminating by mutual agreement Articles VI and XXIV of the Treaty of Commerce and Navigation of 1871. Mr. Sayre explained that he had some days ago read over these two Articles and had been struck by the inadequacy of these provisions to meet present day commercial problems. When the Treaty was drawn international commerce was rather simple, but now we are faced with quotas, exchange restrictions and other new devices for the control of trade. He felt, therefore, that we might mutually agree to the elimination of these two Articles with the expectation that the trade agreement which we anticipate negotiating will make provision for commerce between the two countries.
If a change is made in the Treaty of 1871, such change would have to be approved by the Senate, and it was hoped that it might be possible to lay this change before the Senate during the present session of Congress. A trade agreement, on the other hand, does not need Senatorial approval.
Mr. Sayre read over with Mr. Rosso the two provisions in question, and brought out how iron-clad they are, and referred particularly to their inadequacy in respect of quotas. He called attention to the Article which provides against prohibitions on imports and exports, and which provides for no recognition of proportionate allocation of quotas. Ambassador Rosso asked whether the provisions of a trade agreement, which did not need Senatorial approval, could not be considered as an interpretation of the Articles of the 1871 Treaty, rather than an alteration of them. Mr. Sayre replied that this would seem to be an alteration and that it would be better to lay the matter before the Senate, and thus clear the ground for the trade agreement [Page 535] negotiations; that the provision against prohibitions in the existing Treaty was very iron-clad and did not seem to meet present Italian policy, particularly in respect of quotas.
Ambassador Rosso then made a query, the effect of which was to raise the question of whether we perhaps felt that the Italian quota practices were in violation of the Treaty. Mr. Sayre pointed out that he had not wanted particularly to raise that question, but, speaking frankly, there was of course considerable question as to whether or not Italian treatment of American goods at the present time is not in violation of the Treaty.
Ambassador Rosso explained that he could not of course make any commitment with regard to the attitude of his Government, but that he would send a wire off this afternoon and urge that he be given an early reply.
Mr. Sayre handed to Ambassador Rosso an informal memorandum, a copy of which is attached hereto.25
- Not printed.↩