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

No. 173

Sir: Careful consideration has been given to the request contained in your despatch No. 502, dated August 26, 1936, that the Department give some indication as to what stand might be taken in the event that certain articles of import into Ecuador, which are supplied principally by manufacturers in the United States, are classified as luxuries and, as a consequence, permission is refused for their importation.

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The Government of the United States is continuing to make every effort in support of its policy to bring about a revival of international trade by reducing artificial barriers to that trade. With that end in view, the particular situation in each country where such barriers exist is being followed closely. You will appreciate, of course, that other factors of importance in the international relations of the United States must be taken into consideration in each individual case.

The Department is of the opinion that, for the present, you should confine your action to reporting promptly by telegram all important developments arising from the new Ecuadoran regulations affecting the control of exchange and the licensing of imports; especially the classification of imports as provided for in Article 23 of the new regulations, the remittance of funds accumulated by American interests, and any action that may be taken in connection with pending commercial accounts due for merchandise already imported into Ecuador.

Further instructions will be sent you when future developments and additional study of the situation by the Department make them appear advisable.

Very truly yours,

For the Secretary of State:
Francis B. Sayre