611.2231/35b
The Secretary of State to the Ecuadoran Chargé (Cabeza de Vaca)
Sir: Reference is made to recent conversations between the American Minister at Quito and various officers of the Ecuadoran Government concerning trade relations between the United States and Ecuador and the desire of your Government to enter into negotiations looking toward the conclusion of a trade agreement.
My Government is, of course, deeply interested in the development to the fullest possible extent of the mutually profitable trade between the United States and Ecuador. By means of trade agreements providing for reciprocal tariff advantages, the Government of the United States is, as you are aware, endeavoring to bring about a substantial reduction of trade barriers with a view not only to expanding the foreign commerce of the United States but also to benefiting all countries by a broad program of trade liberalization.
Negotiations are in progress with ten or more countries and negotiations with several other countries are in prospect in the relatively near future. It is expected that, eventually, trade agreements will be concluded with all countries which are among those of substantial importance in the trade of the United States. However, the schedule of work for the trade agreements organization is so heavy that it does not appear to be practicable to Undertake trade agreement negotiations with the Government of Ecuador at this time.
The Government of the United States proposes, however, that negotiations be initiated at once looking toward the conclusion of a [Page 514] modus vivendi, along the lines of the draft11 enclosed with this note, which would regularize the commercial relations between the United States and Ecuador, pending the opportunity to conclude a trade agreement involving reciprocal tariff concessions. The proposed modus vivendi would assure equality of treatment of the commerce of both countries. This would mean, of course, that each country would be assured the enjoyment of any tariff advantages resulting from autonomous action on the part of the other country or resulting from commercial treaties or agreements between the other country and third countries. In this connection it may be pointed out that under such an agreement Ecuador would be definitely assured, as long as the agreement remained in force, of the continued enjoyment of the benefits of trade agreements concluded by the United States with foreign countries, including Haiti and Brazil. The proposed modus vivendi would constitute concrete evidence of the desire of both Governments to give the fullest possible application to the principles of commercial policy enunciated at the Seventh International Conference of American States at Montevideo in December, 1933.
My Government would be very pleased to receive the comment of your Government on this proposal.
Accept [etc.]
- Not printed; this draft is identic with the English text of the notes exchanged at Washington, June 12, 1936, Executive Agreement Series No. 93; 49 Stat. 4013.↩