611.1831/91
The Secretary of State to the Minister in Costa Rica (Sack)
Sir: In its telegram to you, No. 12 of March 2, 1936, 2.00 p.m., the Department stated that it would send you written instructions with reference to its interpretation of the most-favored-nation provisions of the Treaty of Friendship, Commerce and Navigation between the United States and Costa Rica signed July 10, 1851, in its relation to the proposed trade agreement with that country.
You will recall that Article XVI of the proposed trade agreement provides that the agreement replaces any provisions of the Treaty of 1851 inconsistent with it. Article III of the Treaty of 1851 provides for expressly conditional most-favored-nation treatment in respect of both commerce and navigation. Since the engagement of conditional most-favored-nation treatment as to commerce is inconsistent with Article X of the trade agreement, so much of Article III of the Treaty as relates to conditional most-favored-nation treatment in respect of commerce would be superseded. However, there is no engagement in respect of navigation whatsoever in the proposed trade agreement and consequently the provisions for expressly conditional most-favored-nation treatment in respect of shipping contained in Article III of the Treaty of 1851 would continue in force. The Department therefore does not desire you to invoke Article III in any discussion of charges on vessels.
Your attention is invited to Articles V and VIII of the Treaty of 1851, which provide for national treatment of shipping. Under these articles United States vessels are entitled to no less favorable treatment in Costa Rican ports than that accorded to Costa Rican vessels. For your confidential information, you are informed that if Costa Rica established a graduated scale of port charges based on freight rates, resulting in lower port charges for Costa Rican vessels than American vessels, the Department would probably consider such action as contrary to the above cited articles.
Very truly yours,