German Tax

The German Charge d'Affaires in Paris called at the Quai d'Orsay (French Foreign Office), delivered a protest against the French imposition of a 26% import tax on German goods.

The German viewpoint was that the tax would interfere with the working of the Experts' Plan and would otherwise complicate trade relations between the two countries.

The French contention was that Britain has imposed, for some years, a 26% import tax on German goods without complicating trade relations. France was determined, said M. Laroche, political director of the Quai d'Orsay, to put the new tax into effect. He pointed out that the Experts' Plan would not be interfered with. On the contrary, it would be helped. The tax would, said he, partially solve the transfer of reparation payments, because France would collect the tax from the French importer and apply the amount on the account of reparations due from Germany; while the importer would send only 74% of the bill to the German exporter. The German Government would, therefore, be able to reimburse the exporter in German money without causing the least strain on the exchange value of the mark.