611.1831/20: Telegram

The Minister in Costa Rica (Sack) to the Secretary of State

35. Referring to Department’s telegram No. 28, July 17, 8 p.m., Foreign Minister informs me today he will expedite Costa Rican studies for purpose of initiating actual conversations for new treaty on September 1st. Foreign Minister, however, apparently is not as enthusiastic now for new treaty as Government was last January because Germany, which buys more from Costa Rica than it sells, is pressing for equitable balancing of trade. Foreign Minister points out that the United States now sells Costa Rica more than it buys and he shows no enthusiasm for reducing any Costa Rican duties in view of Government’s need for import revenues. At the same time he desires continuation of free entry into the United States of chief Costa Rican products.