617.003/163

The Chargé in Nicaragua ( Dawson ) to the Secretary of State

No. 511

Sir: Referring to the Department’s instruction No. 138 of September 28, 1934, in regard to the proposal of the Nicaraguan Collector General of Customs to the Minister of Finance for a new Nicaraguan tariff, I have the honor to report that the paragraph from the Consulate’s despatch No. 37, of September 15, 1934,34 pointing out that the proposed tariff would provide for increased duties on wheat flour, hog lard and substitutes, machinery in general, automobiles and other commodities of vital importance in the export trade of the United States, which is quoted in the Department’s instruction under acknowledgment, was inserted by the Vice Consul in his despatch at my suggestion.

[Page 522]

Some days ago, before the date of the Department’s instruction, I mentioned to the Minister for Foreign Affairs my feeling that the enactment of a new tariff increasing rates while negotiations were pending for a trade agreement between the United States and Nicaragua which would presumably be intended to produce the opposite effect would be unfortunate, especially as some of the items which would be affected are imported mainly from the United States. The Minister replied that he did not think there was any possibility of the proposed tariff being enacted at the current session of Congress which is due to terminate on October 5, 1934. Later, I made a similar statement to President Sacasa who told me (1) that he had not yet presented the proposed tariff to Congress because his financial advisers had not had a chance to consider it in detail and correlate it with the Government’s general economic program and (2) that he considered my point well taken.

Respectfully yours,

Allan Dawson
  1. Not printed.