611.2231/32
The Minister in Ecuador ( Gonzalez ) to the Secretary of State
[Received November 7.]
Sir: With reference to my despatch No. 38 of May 1, 1935, and subsequent correspondence, particularly the Department’s confidential instruction No. 52 of September 4, 1935, concerning the desire of the Ecuadorean Government to initiate the negotiation of a trade agreement, I have the honor to report that at the regular diplomatic reception on October 11, 1935, the Minister for Foreign Affairs again brought up this question. He said that in examining the records of the Foreign Office he had noted that the desire of the Ecuadorean Government to negotiate a Commercial Treaty with the United States had already been brought to the attention of the Legation by the former Minister for Foreign Affairs, Señor Alejandro Ponce Borja, but that apparently nothing had been done. He then said that the Chief Executive, Señor Páez, was personally interested in this matter and had instructed him to discuss it with me again and to emphasize the necessity of initiating negotiations as soon as possible.
The Minister then told me that his Government is particularly desirous of initiating the negotiations at this time since it believes that the commercial relations between the two countries should be consolidated by a formal agreement which would inure to the benefit of both parties. Moreover, the question of a new trade treaty with Japan will undoubtedly arise when the Trade Commission of that country visits Ecuador in the near future. In this connection he explained that his Government does not wish to discuss a trade agreement with Japan until it has regularized its relations with the United States. Therefore, he stated, it was his intention to address me a note on the subject which he hoped would receive favorable attention by the Department. A copy of the note with English translation is enclosed herewith.6
In compliance with the Department’s confidential instruction No. 52 of September 4, 1935, I told the Minister that the Department greatly appreciates the interest of the Ecuadorean Government in the negotiations of a trade agreement and hopes that at some future time a mutually convenient opportunity might be found to initiate a discussion on the subject. The Minister was grateful for this expression of our intentions but he was insistent in his conviction of the expediency of initiating the negotiations immediately. Moreover, his subsequent confirmation of the conversation by a formal note is obviously [Page 510] an attempt on his part to expedite favorable action by the Department. In view of these circumstances, as well as the matter of discrimination discussed in my despatch No. 161 of October 28, 1935, it would seem desirable to reconsider the advisability of beginning a discussion of the subject. Should the Department not be prepared at this time to initiate the negotiation of a general commercial treaty in which the Ecuadorean Government has exhibited such a lively interest, it might be possible to persuade the Minister that the advantages now accorded to France could be extended to the United States under a modus vivendi providing for most-favored-nation treatment. It can be anticipated, as pointed out in my despatch under reference, that the conclusion of a modus vivendi for the purpose in view will meet with a certain resistance upon the part of the Ecuadorean Government since it has already informally expressed its inability to extend the concessions to us by that means. It may therefore be desirable in the first instance to consider the expediency of proposing a special modus vivendi or provisional agreement which would obtain for American exports to Ecuador the same advantages now granted to those of France.
Respectfully yours,
- Not printed.↩