Papers Relating to the Foreign Relations of the United States, 1926, Volume II

711.162/4

The Secretary of State to the Chargé in Salvador (Muse)

Washington, August 28, 1924.

No. 125

Sir: In his despatch No. 514 of April 7, 1924, Mr. Schuyler stated that he had discussed with the Minister of Foreign Affairs the proposal to enter into an exchange of notes by which this Government and the Government of Salvador would establish unconditional most-favored-nation treatment as between the two countries in commercial matters.

The Department desires that you should discuss this matter again with the appropriate officials of the Government of Salvador, indicating the importance that this Government attaches to the conclusion of a modus vivendi of this nature and stating that similar exchanges of notes have been entered into with Brazil, Czechoslovakia, Nicaragua and Guatemala.⁸

There is transmitted herewith a draft of a note which you are authorized to present to the Government of Salvador if the latter should accept the proposal to enter into the modus vivendi, and you may informally deliver a copy of the proposed note to the Minister of Foreign Affairs and inform him that you are authorized to sign it upon assurance that you will receive a reply in like terms.

I am [etc.]

Charles E. Hughes

[Enclosure]

Draft of Proposed Note to Salvador Establishing Unconditional Most-Favored-Nation Treatment in Commercial Matters

Sir: I have the honor to make the following statement of my understanding of the agreement reached through recent conversations held at San Salvador by representatives of the Government of the United States and the Government of the Republic of El Salvador with reference to the treatment which the United States shall accord to the commerce of El Salvador and which El Salvador shall accord to the commerce of the United States.

These conversations have disclosed a mutual understanding between the two Governments which is that, in respect to import, export and other duties and charges affecting commerce, as well as in respect to transit, warehousing and other facilities, the United States will accord to El Salvador and El Salvador will accord to the United States, its territories and possessions, unconditional most-favored-nation treatment.

It is understood that

No higher or other duties shall be imposed on the importation into or disposition in the United States, its territories or possessions of any articles the produce or manufacture of El Salvador than are or shall be payable on like articles the produce or manufacture of any foreign country;

No higher or other duties shall be imposed on the importation into or disposition in El Salvador of any articles the produce or manufacture of the United States, its territories or possessions than are or shall be payable on like articles the produce or manufacture of any foreign country;

Similarly, no higher or other duties shall be imposed in the United States, its territories or possessions or in El Salvador on the exportation of any articles to the other, or to any territory or possession of the other, than are payable on the exportation of like articles to any foreign country;

Every concession with respect to any duty or charge affecting commerce now accorded or that may hereafter be accorded by the United States or by El Salvador, by law, proclamation, decree or commercial treaty or agreement, to the products of any third country will become immediately applicable without request and without compensation to the commerce of El Salvador and of the United States, its territories and possessions, respectively:

Provided that this understanding does not relate to

(1) The treatment which the United States accords or may hereafter accord to the commerce of Cuba or any of the territories or possessions of the United States or the Panama Canal Zone, or to the treatment which is or may hereafter be accorded to the commerce of the United States with any of its territories or possessions or to the commerce of its territories or possessions with one another.

(2) The treatment which El Salvador may accord to the commerce of Costa Rica, Guatemala, Honduras, and/or Nicaragua.

(3) Prohibitions or restrictions of a sanitary character or designed to protect human, animal or plant life or regulations for the enforcement of police or revenue laws.

The present arrangement shall become operative on the day of signature and, unless sooner terminated by mutual agreement, shall continue in force until thirty days after notice of its termination shall have been given by either party; but should either party be prevented by future action of its legislature from carrying out the terms of this arrangement, the obligations thereof shall thereupon lapse.

I shall be glad to have your confirmation of the accord thus reached.

Accept, Sir, the renewed assurance of my high consideration.

8. For texts of notes, see Foreign Relations, 1923, vol. i, pp. 461–463 and 873–875; also ibid., 1924, vol. ii, pp. 514–517 and 290–292, respectively.