Foreign Relations of the United States, Diplomatic Papers, 1934, The American Republics, Volume V

611.3731/817: Telegram

The Secretary of State to the Ambassador in Cuba (Caffery)

Washington, August 7, 1934—2 p.m.

123. The following amendments should be incorporated into draft transmitted with instruction No. 289, July 28 (see also your despatch 997 of July 31⁶³).

Second paragraph, Article II, and second paragraph, Article III. The exception should refer to Articles IX and XI. The purpose of the phraseology “in excess of those imposed or required to be imposed” in Article IX is to leave the way open, if necessary, for application of laws relating to anti-dumping duties, countervailing duties, et cetera.

With reference to the suggestion to include existing and unchanged percentages of preference in excess of 20 percent in the basket clause of Article II, the Department would like to see each article in this category fully enumerated and described in Schedule I. The desirability of signing the Agreement at the earliest possible date may preclude the full description in Schedule I of every article with a preference of more than 20 percent. If it is impossible for the Embassy to send up the Schedule piecemeal, but in numerical order, then you may follow the procedure suggested in the memorandum from the American Technical Advisers and substitute the following for the third paragraph of Article II:

“Every article the growth, produce or manufacture of the United States of America which is not provided for in Article I, and which is not enumerated and described in Schedule I annexed to this Agreement, shall, on importation into the Republic of Cuba, be granted an exclusive and preferential reduction in duty not less than the percentage of reduction which would have been accorded if imported into Cuba on the day of the signature of this Agreement, such percentage of reduction being applied to the lowest rate of duty now or hereafter payable on the like article the growth, produce or manufacture of any other foreign country.”

Articles V and VI. In view of the preference of the Cuban authorities to include unilateral commitments in the Schedules, it is agreeable to incorporate Articles V and VI in the appropriate place in Schedule I. In the case of each paragraph the words “the Republic of Cuba undertakes that” should be omitted.

Article VII. The first sentence should read, “Fees, charges or exactions imposed by the United States of America or the Republic of Cuba for consular certification of invoices and for other consular services pertaining to the documentation of any shipment of articles the growth,” et cetera.

Article IX. After the word “origin” in the seventh line change the colon to a period. In the same line delete the words “Provided, that” and begin a new paragraph reading “All articles enumerated and described”, et cetera.

In the eleventh and twelfth, and eighteenth and nineteenth lines delete the phrase “, other than customs duties,”.

The last sentence should start a new paragraph.

Sixth line, Article X. The word “terms” should be changed to “provisions”.

Article XI. After the word “entry” at the end of the fifteenth line, change the period to semicolon, and insert the following:

“except, that any such increase in rates of duty imposed by either country on imported articles the growth, produce or manufacture of the other country, shall not be greater proportionately than the increase in rates of duty on like articles the growth, produce or manufacture of any other foreign country.”

Article XV. Place a period after the word “them” in fifth line, and for what follows substitute this sentence:

“Such laws, regulations, and decisions of the United States of America or the Republic of Cuba shall be applied uniformly at all ports of entry of the country, except as otherwise specifically provided in statutes of the United States of America relating to articles imported into Puerto Rico.”

Article XVIII. The second sentence of this article should read “Unless at least six months before the expiration of the aforesaid term of three years”, et cetera.

With reference to the final question raised by despatch 997, it is believed that the system at present used in the Cuban customs tariff may be followed in preparing Schedule I; that is, that at the end of the nomenclature the unit of measure will be mentioned and that in the case of tare allowance, simply the word “tare” will appear in the schedule, without further reference to the kind of tare.

Hull

63. Despatch not printed.