The Minister in Nicaragua ( Lane ) to the Secretary of State
[Received 2:47 p.m.]
50. My despatch No. 870, June 11, 1935.9 As the Exchange Control Commission, a Nicaraguan Government agency, appears to be operating on the bilateral principle, to which the Department objects in its instruction No. 270 of June 11, 1935, I suggest the advisability of the Department authorizing me to include, in forthcoming conversations with Nicaraguan officials on proposed tariff law, mention of present policy of Exchange Control Commission. Objection to such a policy would seem to be implicitly expressed in the second paragraph of memorandum transmitted with above mentioned instruction.
Lindberg10 informs me that present policy of not granting exchange to those countries which do not purchase unit of goods has resulted in preventing further dumping of Japanese products here and expresses the opinion that if this policy be changed Japanese goods will swamp the market.