625.3531/38
The Chargé in Argentina (White) to the Secretary of State
[Received June 12.]
Sir: I have the honor to enclose herewith a notice from the Buenos Aires Herald of May 3084 in regard to the signature of the preliminary draft of the Argentine-Chilean commercial treaty.
The clauses concerning favored treatment for merchandise of the two countries have been settled, but publicity has been withheld pending the signature of the whole treaty.
As a result of a conversation which I held with my Chilean colleague and of a similar conversation between Dr. Dye85 and a member of the Argentine Tariff Board, the following would appear to be the situation:
Chilean timber entering Argentina is to pay various differing rates of duty. Some of it when cut into logs (rollizos) and beams (vigas) I understand will be exempt to the extent of 50 per cent. There are [Page 719] specifications as to types of wood, as for instance, raulí, some of which will obtain a 28 per cent, reduction and others a 35 per cent, reduction.
Fresh fruit is not included among the articles subject to reduction. Likewise, I understand prunes are not included. Dried peaches from Chile will obtain a 35 per cent, reduction; garlic 28 per cent, or a 35 per cent. Chilean lobsters will enter free. Other fresh seafood will obtain a reduction of 28 per cent, or 35 per cent.
Chilean nitrate will obtain favored treatment but not copper.
The foregoing, being based on conversations, is somewhat lacking in precision and is of no use for publication, the more so as it was communicated in strict confidence. It will, however, serve to show that the Argentine Government has been very careful to avoid the question of the most-favored-nation clause, such as occurred in the first Chilean modus vivendi. I understand that the Chileans are not very satisfied with what they have obtained and were particularly annoyed with the uncompromising attitude displayed during the negotiations by Señor Piñedo, the head of the Argentine Customhouse.
Respectfully yours,