611.1631/126
The Minister in El Salvador (Corrigan) to the Secretary of State
[Received September 30.]
Sir: I have the honor to refer to the Department’s telegram No. 41, of September 21, 2 p.m.,14 requesting information as to the progress [Page 549] of the trade agreement negotiations, and to my telegraphic reply of September 23, 10 a.m.14a
Conversations with the government have been held several times a week, but it has not so far been possible to reach the point of concrete discussions of the items included in Schedule I. The government is inclined to proceed very slowly and has been very much occupied with matters of internal revenue. The Ministry of Finance is understaffed and its studies of the effects of the trade agreement on customs revenue have repeatedly been interrupted by pressing business, such as the new Moratorium Law15 and an important claim against the government which resulted in the granting by the courts of an embargo of the State’s property. This action has been the subject of lengthy discussion in the newspapers and had internal political connotations. As a result, it has occupied the attention of the Minister of Finance almost exclusively during the last few weeks. The Loan Negotiations have also been a factor.
Both the President and the Minister of Foreign Relations have assured me of Salvador’s inclination to negotiate this trade agreement. Every effort is being made, and will continue to be made, to bring this matter to the earliest possible conclusion.
Respectfully yours,