The Secretary of State to the Nicaraguan Chargé (De Bayle)
Sir: The Department has received your note of September 16, 1933, concerning the commercial relations between Nicaragua and the United States. You state that your Government has followed with the greatest interest the news published with reference to negotiations initiated by the Department of State with certain countries with a view to the celebration, on bases of reciprocity, of commercial agreements contemplating mutual concessions in customs tariff matters, and that in this connection your Government desires that the United States grant to Nicaraguan commerce and products treatment not less favorable than that accorded to any other country of America, and that no greater restrictions than those at present imposed be placed on the importation of Nicaraguan products. You also state that you have been instructed to express the desire of your Government not to remain outside the commercial agreements which may be celebrated.
You also refer to discussions now being held in the Department of Agriculture of the United States, in execution of the Agricultural Adjustment Act, with the object of arriving at a marketing agreement [Page 495] for sugar stabilization which you fear would exclude sugar produced in Nicaragua from importation into the United States, and you suggest the advisability of arranging for the Minister of Finance of Nicaragua, Dr. Salvador Guerrero Montalván, who is now in Washington, to consult with the appropriate officials of the Treasury and Agriculture Departments in this connection.
The Government of the United States appreciates and shares the desire of the Government of Nicaragua to continue and intensify the close commercial relations already existing between the two countries. Evidence of this desire on the part of the United States, as well as of Nicaragua, is the Agreement effected by an exchange of notes of June 11, and July 11, 1924, between Nicaragua and the United States, providing for mutual unconditional most-favored-nation treatment in customs matters.5 This agreement is still in effect.
As you are aware, the Government of the United States is now engaged or is about to engage in conversations with representatives of Colombia, Brazil and Argentina with the object of exploring the possibilities of negotiating reciprocity agreements.6 These conversations are purely exploratory, however, and the United States will not be able to determine whether or not it will be practicable to enter into reciprocity agreements with the Governments mentioned or with other governments until they are completed.
In the event that the present studies and conversations should indicate the practicability of this Government’s entering into a series of reciprocity agreements, it will be happy to initiate conversations with the Government of Nicaragua looking to the possibility of the negotiation of such an agreement.
With reference to your comments regarding the discussions being held under the Agricultural Adjustment Act looking to the execution of a marketing agreement for sugar stabilization, and your fears that this agreement might have the effect of excluding sugar produced in Nicaragua from importation into the United States, the Department has transcribed the pertinent portion of your note to the Department of Agriculture and will inform you of the nature of that Department’s reply when it is received. In this connection, the Department of State has recommended to the Department of Agriculture that the proposed marketing agreement not contain any provision which would have the effect of placing an embargo on the importation of full duty sugars.
With reference to your suggestion that it might be advisable for the Minister of Finance of Nicaragua, Dr. Salvador Guerrero Montalván, [Page 496] to confer with officials of the Treasury and Agriculture Departments while he is in Washington, this Department will be pleased to arrange for conferences between Dr. Guerrero and such officials as he may care to confer with.