711.162/10

The Minister in Salvador ( Schuyler ) to the Secretary of State

No. 622

Sir: Referring to previous correspondence on the subject of an exchange of notes between the United States and Salvador to establish most-favored-nation treatment, I regret to have to inform you that although I have spoken on this matter with the President, with the Minister of Hacienda, and with the Minister for Foreign Affairs (with the latter not less than four or five times) I have been unable up to the present to get any tangible results. The Minister of Hacienda informed me that in his opinion Salvador would consent to give most-favored-nation customs tariff but that it would be difficult to grant rebates on the additional charges or taxes imposed as a percentage of the customs duties on importations, which run in some cases from 25 to 1 per cent, of the duties. The Minister for Foreign Affairs is, in my opinion, the chief obstacle at the present time. He does not clearly understand what is involved, and he believes that by delay without positive refusal or positive acceptance he will save himself trouble in the future and not be accused of giving away privileges without corresponding concessions.

If I do not obtain any reply within a few days, I expect to address this Government again, pointing out with a little more insistence the unfortunate results which might be caused if the United States were to find it necessary to impose a considerable duty on imports of Salvadorean coffee.

I have [etc.]

Montgomery Schuyler