611.2231/35a
The Secretary of State to the Minister in Ecuador ( Gonzalez )
Sir: Reference is made to your despatches No. 161 and No. 162 of October 28, 1935, and No. 177 of November 8, 1935, in regard to the discrimination against American commerce resulting from the modus vivendi of July 9, 1935, between Ecuador and France and the desire of the Government of Ecuador to enter as soon as possible into trade agreement negotiations with the United States.
In view of the situation described in the above-mentioned and earlier despatches, the Department has deemed it advisable to propose a most-favored-nation modus vivendi pending the outcome of further discussions concerning the possibility of initiating trade agreement negotiations. There is enclosed for the Legation’s information a copy of a note,9 addressed to the Ecuadoran Chargé d’Affaires at Washington, presenting such a proposal to the Government of Ecuador.
If you are approached in regard to this proposal, you may point out the advantage to Ecuador of assurances that tariff reductions and bindings of duties and free entry under trade agreements between the United States and other countries will be extended to Ecuador. Appropriate reference may be made to the fact that the United States has extended to Ecuador the tariff benefits resulting from trade agreements already concluded, including those with Haiti10 and Brazil. [Page 513] You may state that your Government would like very much to continue to accord unconditional most-favored-nation treatment to Ecuador, and is therefore concerned, with reference to the carrying out of the provisions of the Trade Agreements Act, about the disadvantages to American trade resulting from the preferences given by Ecuador to France. The provisions of the Act referred to reflect two closely related objectives, namely, the reduction of barriers to international trade and the protection of American commerce against discriminatory tariff treatment. You may say, further, that it is your understanding that the modus vivendi has been proposed with a view to placing the commerce of the two countries on a reciprocal most-favored-nation basis pending the opportunity to initiate trade agreement negotiations.
Very truly yours,