611.3731/777
The Secretary of State to the Ambassador in Cuba (Caffery)
Sir: Reference is made to the Department’s telegram No. 116 of July 23 and your telegram No. 367 of July 24, 1934,59 with regard to the Chilean participation in the Cuban import trade of white, and of red and pink beans.
Although obviously the Department desires to secure favorable concessions on all export items of real interest to this country, it does not [Page 155] desire to divert the trade between Cuba and a third country, particularly when such trade is largely confined to one item. Chilean exports to Cuba take the form in large part of beans, and principally of red and pink beans. Reconsideration has been given to this matter, with the result that you are requested to recede for item 257–B to a preference of twenty-five percent on the present general rate of $5.00.
The opportunity has also been taken to restudy the concessions obtained on the other types of beans. Although the Department approved, in instruction No. 104 of April 25, 1934,60 an increase in the United States rate on item 257–C, covering white beans, the Department’s policy has developed since that time to the position that the present trade agreement should result in no increases in United States rates. Therefore, please recede to the existing United States rate of $2.00, with a preference not to exceed 40 percent. The United States rate should not be bound.
Very truly yours,