660M.116/8

The Chargé in Lithuania (Kuykendall) to the Secretary of State

No. 240 (Diplomatic)

Sir: I have the honor to refer to the Department’s telegram No. 5 of February 6th, 5 p.m., instructing that there should be submitted as [Page 570] soon as possible a comprehensive report on the present treatment by Lithuania of American trade, showing definitely whether or not American trade is at the present time receiving most favored nation treatment. The Legation at Riga had been requested to forward to this office a copy of a report from Tallinn which was to serve in form and content as a model.

In compliance with the Department’s request, I am enclosing a Memorandum entitled “Present Treatment of American Trade in Lithuania”, which has been prepared by Vice Consul Basil F. Macgowan.11 From the investigation conducted, it would appear that prior to February 6, 1935, (the date on which the Import License System was extended to cover 85 per cent of all imports into Lithuania), there were no restrictions placed upon the importation of American goods into Lithuania and that up to that date there could be no possible complaints that the United States was not enjoying most-favored-nation treatment in the full meaning of the term as interpreted by the Lithuanian-American Commercial Accord of December 23, 1925.12

Instances in which difficulties have been encountered in the free importation of American products into Lithuania subsequent to February 6, 1935, are discussed in the Memorandum forwarded herewith. As it is still too soon to determine the full effects upon American trade of the extension of the License System and of quota arrangements effected with individual countries, there must be submitted in future reports, developments actually denying to American trade most favored nation treatment.

Respectfully yours,

C. Porter Kuykendall