The Minister in Ecuador (Gonzalez) to the Secretary of State

No. 377

Sir: With reference to my despatch No. 370 of May 12, 1936, 19 concerning the memorandum which the Department presented to the Ecuadorean Legation in Washington under date of April 24, 1936, and which set forth certain changes desired in the text of the American-Ecuadorean modus vivendi submitted by Ecuador, I have the honor to transmit herewith a copy with English translation of an instruction in the premises to the Ecuadorean Minister in Washington, dated May 13, 1936.19 It will be observed that the Ecuadorean Minister has been instructed to change the text of Article 2 to conform with the suggested text contained in the Department’s memorandum under reference.

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As concerns Article 3 which sets forth the reasons for granting the preferential tariff to the United States, the Ecuadorean Minister is authorized to eliminate this Article from the proposed modus vivendi. However, he is instructed to send a second note to the Department in which he will make reference to the one transmitting the copy of the modus vivendi and outline the reasons why the preferential tariff is being accorded to the United States. It will be noted that the Foreign Office has directed that this step be taken simply to avoid the interpretation by any third country that the preferential tariff has been accorded to the United States as a result of the most-favored-nation clause.

I expressed regret to the official of the Foreign Office that it had not been found feasible to take care of this point in the manner previously suggested to him, namely, an order of the Minister of Finance to the Customshouses. Doctor Borrero stated that he had made this suggestion to the Permanent Committee, but that it had not considered that procedure proper under Ecuadorean commercial policy and laws.

The Foreign Office also furnished a copy of the proposed text of the agreement which was sent to the Ecuadorean Legation in Washington under cover of the instruction in question. It appears to conform with the one previously furnished, with the exception of the modification made in Article 2 and the suppression of the old Article 3. In view thereof it would not appear necessary to transmit a copy.

Respectfully yours,

Antonio C. Gonzalez
  1. Not printed.