The Secretary of State to the Minister in El Salvador ( Corrigan )

No. 99

Sir: I am transmitting herewith a list of concessions and assurances9 which the United States desires to obtain from El Salvador in connection with the proposed Trade Agreement between the two countries. This list is known as Schedule I.

Please present this list to the Salvadoran Government, together with an aide-mémoire, the text of which is enclosed herewith.

Under cover of a separate instruction, which left by pouch on March 30, 1935, I transmitted one copy of the mimeographed report on Schedule I prepared by the Country Committee on Trade Agreements with Central America. The changes made in this report during the course of its examination by the Trade Agreements Committee have been noted therein, and a supplemental report on textile recommendations has been included, substantially modifying and limiting the recommendations contained in the report transmitted to you by the Department’s instruction No. 90 of March 26, 1935.9

Your attention is invited to the several points discussed in the aide-mémoire attached hereto.

I believe that you will be in a position, after a study of the various reports that have been sent you, to clear up any question which the Salvadoran Government may raise in regard to the Agreement in its present phase.

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You are requested to keep the Department informed of all developments in connection with the Agreement and to transmit promptly any counterproposals or suggestions made by the Salvadoran Government in order that they may be studied and acted on by those officials charged with the execution of the trade agreements program.

Very truly yours,

For the Secretary of State:
Francis B. Sayre

Draft “Aide-Mémoire” To Be Presented to the Salvadoran Ministry for Foreign Affairs by the American Legation

Attached to this memorandum is a Schedule listing under three categories concessions and assurances on certain commodities exported by the United States to El Salvador which the United States is requesting of the Government of El Salvador in connection with the proposed Trade Agreement between the two countries.

Included under category (a) are the reductions in import duty sought by the United States on certain specified commodities; under (b) is included a list of items on which it is requested that the Salvadoran Government not raise the import duty during the life of the proposed Agreement; while under (c) four miscellaneous requests are made, concerning, in the order they are named, the treatment requested by the United States in connection with pharmaceutical specialties and patent medicines exported to El Salvador (Notes 1 and 2), integration of the import duties on wheat and wheat flour (Note 3), and the abolition of the present internal taxes on imported wheat and on flour made of imported wheat (Note 4).

In describing the articles on the attached Schedule, every effort has been exerted to conform as closely as possible with the nomenclature used in the Salvadoran customs tariff. In many cases, however, the nomenclature of the Salvadoran customs tariff and that given under the column “Description of Articles” differ, because the concession sought by the United States is more restricted in scope than the language used in the corresponding item of the Salvadoran customs tariff. It is therefore pointed out that the tariff item numbers inserted in the attached Schedule have been cited principally for the convenience of the Salvadoran Government. The description of the articles given controls the scope of the concession or assurance in question.

In those cases where exports from the United States to El Salvador receive the benefit of a lower, conventional rate by virtue of generalization to the United States of the concessions made by El Salvador to France and Italy in commercial treaties with those nations, the [Page 543] conventional rates of duty have been indicated on the attached list under the column “Present actual duty in United States dollars.” These rates have been used instead of the respective nominal rates given in the Salvadoran customs tariff and which presumably apply, subject to the effects of the triple-column tariff law now in effect, to nations with which El Salvador does not have most-favored-nation commitments.

With regard to item No. 212–1–07–001, wheat: the present duty, as indicated on the attached list, is $8.80 per 100 gross kilos. The Government of the United States, in requesting a rate on wheat exported to El Salvador of $2.50 per 100 gross kilos, understands that this is the duty actually in effect at the present time for Salvadoran wheat importers and millers. This request, therefore, is not considered a request for a concession, but as an assurance that the actual rate of $2.50 will apply to wheat exported from the United States to El Salvador during the life of the Agreement.

In no case has a preferential tariff rate been requested for products of the United States as compared with similar products from any third country.

It is understood that the Government of the United States reserves the privilege of suggesting such changes in this Schedule as may on further consideration seem desirable prior to its final approval by both Governments.

The Government of the United States expects in the near future to submit a preliminary draft of the General Provisions, which, together with the Schedules setting forth the concessions and assurances that may be reciprocally granted by the United States and El Salvador, will constitute the Trade Agreement which it is hoped will be approved within the near future by the two Governments.

The Government of the United States is prepared to receive and give serious consideration to any proposals that the Salvadoran Government may choose to present in connection with possible tariff concessions which the United States might grant on products exported by El Salvador to the United States of America, as well as to any other proposals which the Government of El Salvador might wish to have considered in connection with the proposed Trade Agreement.

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