Foreign Relations of the United States Diplomatic Papers, 1936, The American Republics, Volume V

611.2231/92

The Chargé in Ecuador ( Sparks ) to the Secretary of State

No. 633

Quito , December 15, 1936.
[Received December 22.]

Sir: In confirmation of my telegram No. 59 of December 15, 8 p.m., 1936,²⁹ and with reference to my despatches No. 631 of December 11, 1936, and No. 632 of December 14, 1936, I have the honor to transmit herewith a copy with English translation of a note received this evening from the Minister for Foreign Affairs relative to my conversation with him on December 11th concerning the bases for a trade agreement between the United States and Ecuador.

The Department will observe that the Ecuadorean Government has no objection to concluding an agreement on the basis of the unconditional most-favored-nation clause, recognizing that the policy of our recently concluded trade agreements is based thereon. Also, in view of the concessions which the American Government is prepared to consider granting to Ecuador it will accord a 50% reduction in the duties on wheat flour and hog lard proceeding from the United States. The Minister expresses the belief that this will facilitate the increase of exports of these products to Ecuador as in previous years.

In return, the Government of Ecuador would be pleased to see bound on the free list its principal export products, such as annatto, cacao, coffee, cascarilla, rubber, reptile skins, kapok fibre, bananas, tagua nuts, and other products at present on the free list. With the purpose in view of developing exports of other products to the United States, the Government of Ecuador would be pleased if the United States granted a reduction of 50% in the existing duties on the following products:

• Palm leaf hats,
• Sawed balsa lumber,
• Lentils,
• Carbonic gas,
• Mineral waters,
• Naranjilla and its juices.

The Foreign Minister anticipates that the granting of these reductions would not have any great repercussion in the United States but, on the contrary, would facilitate their introduction in the American market. He then expresses the belief that the conclusion of a trade agreement on these bases would undoubtedly facilitate trade between the two countries, maintain the cordial relations which have always existed, and give great amplitude to the principles of an economic and commercial character which President Roosevelt announced in his program of the “Good Neighbor” Policy.

I have reported in my despatch No. 632 of December 14, 1936, my conversation with Doctor Banda concerning lentils, naranjilla juice and carbonic gas. I shall appreciate it if the Department will inform me whether it is feasible to grant reductions on naranjilla juice without making the concession applicable to all other juices.

With regard to sawed balsa lumber, I am unable to determine whether the duty listed of $1.50 per M feet in the Department’s instruction No. 186 of November 11, 1936, is a typographical error or the new rate obtaining under the Trade Agreement with Canada. The 1936 Custom House Guide (page 530) states the internal revenue tax to be $3.00 per M feet. If this is the new reduced rate it will be an easy matter to make clear that no further reduction can be granted.

I have reported in my previous despatches that I have already pointed out to the Ecuadorean authorities that the Department is primarily interested in products now being exported by Ecuador to the United States, and that articles such as lentils, mineral waters and carbonic gas, would involve benefits principally to other countries and only potential advantages to Ecuador.

Respectfully yours,

Edward J. Sparks

[Enclosure—Translation]

The Ecuadoran Minister for Foreign Affairs ( Chiriboga ) to the American Chargé ( Sparks )

No. 60

Quito , December 15, 1936.

Mr. Chargé: I have read carefully the courteous memorandum of the 11th instant, which you addressed to me confidentially with respect to the general bases on which a commercial treaty could be concluded between Ecuador and the United States.

In reply I have pleasure in informing you that my Government would not have the least objection to concluding the agreement on the basis of the unconditional most-favored-nation clause on which is based the policy of commercial treaties recently concluded by the Government of the United States.

Moreover, and in view of the concessions which your Government proposes to accord to Ecuador, a reduction of 50% of the general tariff will be granted to wheat flour and hog lard proceeding from the United States, which reduction will undoubtedly facilitate the increase of the exports of these products to Ecuador, such as occurred in previous years.

In return, the Government of Ecuador would be pleased to see continued on the free list the products which it is at present exporting to the United States, such as: annatto, cacao, coffee, cascarilla, rubber, reptile skins, kapok fibre, bananas, tagua nuts, and the other products which now appear in the free list of the customs classification.

As Ecuador is interested in encouraging the export trade of other products which have a market in the United States, it would be pleased if, taking advantage of the authority which the Congress of the United States has granted to His Excellency, the President of your country, a reduction of 50% on the existing customs duties were granted for the following products:

• Palm leaf hats,
• Sawed balsa lumber,
• Lentils,
• Carbonic gas,
• Mineral waters,
• Naranjilla and the juice of this fruit.

As you will see, Mr. Chargé, the concessions which Ecuador asks in this last paragraph, will not have any great repercussions in the great (gran) economy of the United States but, on the contrary, will facilitate the introduction of these products which, as I have previously stated, have been well received in that market.

I should be very grateful to you if you would be good enough to communicate this information to the Department of State by air mail, if possible, in order to see whether on these bases a trade agreement can be concluded, which undoubtedly will facilitate the commercial interchange between both countries, maintain the cordial relations which have always existed, and give greater amplitude to the principles of an economic and commercial character, especially applicable in Latin America, which on more than one occasion have been enunciated in the program of the “Good Neighbor” policy formulated by His Excellency President Roosevelt.

I avail myself [etc.]

A. I. Chiriboga

29. Not printed.