611.2131/310

Memorandum by Mr. Donald R. Heath of the Division of Latin American Affairs

I met the Colombian Minister, who brought up the question of the pending trade agreement negotiations. He stated that he hoped that he would shortly receive a reply and instructions with regard to the new draft trade agreement recently submitted to his Government. He said that he had been asked to endeavor to obtain a definite assurance against the application of American anti-dumping duties on Colombian coffee, but had replied that it was impossible for the Department to give definite assurances in this regard unless the proposed trade agreement were to be submitted to the Congress. He further said that an objection had been raised to the proposed provision [Page 440] whereby no Colombian municipality or department could levy new discriminatory taxes on imported goods of American origin, nor could they increase existing discriminatory taxes. He said that there was feeling that this provision constituted a new substantial concession to American interests for which no quid pro quo was offered Colombian interests. He said that he personally did not espouse this bargaining attitude and hoped that his Government would not take it, but would take the higher ground that discriminatory internal taxes against imported goods were bad in principle and that, while for political reasons it would be necessary to allow Colombian cities and departments now levying such taxes to maintain them, the further spread of such taxes should be stopped.

Donald R. Heath