The Secretary of State to the Minister in Salvador (Schuyler)
2. Your 2, January 14, 1 p.m. While appreciating the motives which prompt the Government of Salvador to make the request contained in your telegram referred to, the Department is not in a position to accede to it. You are, of course, correct in pointing out that Article 8 renders the concessions of the Treaty with Cuba exclusive. If the United States should grant any other country a reduction on sugar, Cuba would be entitled to a rate less by 20 per centum than the reduced rate. Moreover, such a reduction would not be of great benefit to Salvador because the United States would have to generalize it at least to the seven countries with which it has in operation unconditional most-favored-nation agreements, including such sugar producing countries as Brazil, Czechoslovakia, Dominican Republic, Guatemala and Nicaragua.11 Salvador already generalizes the concessions of its agreement with France to a number of other countries. The United States wishes to be placed in a position of equality with these countries.
The Department is gratified that the matter of the proposed modus vivendi is again under active consideration. You are requested to use every endeavor to conclude it promptly.