611.176 Sugar/40

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

No. 151

Sir: Reference is made to the second paragraph on page five of your despatch No. 496 of September 26, 1934, reporting that President Sacasa in a recent conversation expressed the hope that the United States would grant Nicaragua a sugar quota on the same preferential terms as Cuba. You inquire as to whether your interpretation of the difference in status between Cuba and Nicaragua, as conveyed to President Sacasa, is correct.

The Department approves your expression of views on this subject to Doctor Sacasa. The Department does not contemplate departing from its established policy of unconditional most-favored-nation treatment and of making an exception to this rule only in favor of Cuba. In the negotiations for trade agreements shortly to be undertaken, it is not planned to grant preferential treatment to any other countries. Furthermore, under the Trade Agreements Act of June 12, 1934, this Government could discriminate in favor of the product of one country as against the product of another only if the latter discriminated against the trade of the United States or if its acts or policies were such as to defeat the purposes of the act.

Very truly yours,

For the Secretary of State:
Francis B. Sayre