Germany proposes to suspend negotiations for the trade agreement. It refuses the advantages we are demanding for our wines and for Alsace textiles.

The Ministry of Commerce communicates the following note: After receiving the latest French proposals, both regarding the tariff conditions and the general clauses of the proposed trade agreement, the head of the German delegation came to explain to the Minister of Commerce the reasons why the government in Berlin considers it impossible to conclude the agreement in time for it to receive the approval of the German and French parliaments before their separation.
Germany does not see itself in a position to grant French wines most-favored-nation treatment, that is, the benefit of the reduced duties it currently grants to Spain and Italy, and it can only apply tariffs far in excess of French demand. Likewise, despite the French government's abandonment of its previous demands regarding the granting of a preferential regime for Alsatian textiles, it cannot grant these products the tariffs demanded by the French government, but only duties on average 40 to 90% higher than the current German duties and 150 to 200% higher than the French duties for the same products.
Germany does not consider, moreover, that the latest French offers can, despite concessions whose importance it does not dispute, ensure it a position on the French market equivalent to that which it believes is reserved for French exports on its own.
It therefore considers it impossible to reach a conclusion before the separation of the Parliaments of the two countries and proposes to suspend the talks while maintaining contact with a view to future discussions. Mr. Chaumet, noting that, on the general principles of the agreement, no divergence remains and that the tariff issues in dispute are limited to a small number of points, which are, moreover, important, pointed out to the German delegation the disadvantages that could result from further delays in the conclusion, which could now be considered imminent, of a convention that the two countries have been awaiting for many months.
He arranged to meet with Mr. Trendelenburg for Monday evening to discuss how contact could be maintained with a view to further negotiations.