611.6331/134

Memorandum by the Chief Economic Analyst of the Trade Agreements Section (Hansen)

Conversation: Mr. Edgar L. Prochnik, Austrian Minister.
Mr. Grady2 and Mr. Hansen.

The Austrian Minister was called in for the purpose of discussing the matter of the generalization of concessions in the Belgian agreement.3 Mr. Grady explained that it was our purpose to generalize concessions to all countries which did not substantially discriminate against American commerce. It was pointed out that the State Department is fully conscious of the extraordinary difficulties which Austria faces. Attention was called to the clear discrimination against American commerce in the quota assignments made by Austria on automobiles. The Minister was informed that it is our intention to generalize the concessions to Austria provisionally, but that we would expect Austria to rectify the automobile quota discrimination.

The Minister stated that he had already, following the newspaper discussion about our generalization policy, advised his Government that something should be done to rectify this and other minor discriminations. The Minister stated that he had had some fear that Austria might be placed on the list of discriminating countries, and was very appreciative of our understanding of the peculiar difficulties under which she was working, particularly with respect to her Danubian neighbors. He stated that while he could make no definite commitments, he felt that something definite could be done in the automobile matter. He said that there was a considerable group in Austria who favored more generous imports of automobiles, particularly garages and gasoline stations and accessory automobile industries. He said that he would inform his Government in detail about the conversation and hoped that the automobile matter would quickly be rectified.

A[lvin] H. H[ansen]
  1. Henry F. Grady, Chief of the Trade Agreements Section.
  2. See pp. 102 ff. For text of agreement, signed February 27, 1935, see Department of State Executive Agreement Series No. 75 or 49 Stat. 3680.