CO129-491 - Public Offices - 1925 — Page 12

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the selling price in the country of origin but not below

the cost of production need not necessarily be so regarded

but His Majesty's Government felt that it would be impos-

sible to require that British official representatives

should make investigations of such a character in a

foreign country where His Majesty's Government had no

jurisdiction. While therefore in the Act the expression

Cost of 'Production' was retained, it was defined

arbitrarily as the Current sterling equivalent of 95% of

the wholesale price at the works..."

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His Majesty's Government of course do not desire

to offer any objection to the requests of the United

States Authorities for such information as they may deem

necessary so long as there is no compulsion on British

manufacturers to disclose information which they regard

as secret and would object to disclose to British officials.

Other governments faced with the difficulty that

goods may be under valued do not resort to thepenalty of

prohibiting the importation of the goods of the particular

manufacturer, but themselves, if in doubt, appraise the

goods at what they consider a fair valuation, and indeed

a fair valuation can usually be made. If the valuation

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is too high, it is for the exporter to satisfy the

authorities concerned that it is too high.

His Majesty's Government would therefore most strongly urge on the Government of the United States the desirability of suspending the penalty of prohibition on

juch importation in Section 510, and replacing it by some method

as that above indicated."

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13. In order that the friendly disposition of His

Majesty's