611.1631/139
The Minister in El Salvador (Corrigan) to the Secretary of State
[Received March 11.]
Sir: I have the honor to acknowledge the receipt of the Department’s instruction No. 201, of February 27, 1936, requesting an expression of opinion as to the advisability of pointing out to the Salvadoran Government, by note, in connection with the trade agreement negotiations, the advantage which would accrue to it from the generalization of the concessions granted in trade agreements already signed.
As the Department is aware, the first study of the suggested Schedule I,3 made by Doctor Alfonso Rochac, pointed out that coffee was El Salvador’s principal export; that it entered the United States free of duty; that under the Trade Agreements Act,4 the President had no authority to change any commodity from the free to the dutiable list; that even if coffee were subjected to import duties, by Congressional action, continued free entry had been granted other countries (Brazil) in trade agreements already signed; and that similar treatment was insured to El Salvador through the most-favored-nation clause of the Treaty of Friendship, Commerce and Consular Rights, signed in San Salvador on February 22, 19265 (Treaty Series No. 827.).
While the Salvadoran Government has indicated its willingness to sign a trade agreement, its attitude has been that such action would be a gesture of good will, rather than in order to insure positive commercial advantages to El Salvador. In the conversations now being conducted with the Undersecretary of Finance, Doctor Max. P. Brannon, relative to Schedule I, there has been a tendency to grant unimportant concessions grudgingly; and to withhold concessions on nearly all the important items, for example, wheat, flour, lard, cotton piece [Page 560] goods, et cetera. While the conversations are still continuing, Doctor Brannon’s attitude is one of giving ear, but not serious consideration, to the other factors to be considered; the atmosphere being that he is not willing to be convinced, nor seriously to consider the possibility that reduced duties will result in increased imports to such an extent as to offset the possible loss of revenue. His position is also that of refusing any concession when the question of protection of any Salvadoran industry is concerned; no matter how unimportant or uneconomic the industry, or the amount of protection (sometimes excessive) now granted.
It is consequently considered that the submission of a note, pointing out the advantages which will accrue to El Salvador through generalization of the concessions already granted in trade agreements signed up to this time, would be of material assistance in obtaining further and important concessions, not only in discussion of the matter with Doctor Brannon, but also in conversations with the President.
Respectfully yours,
- Tariff rates conceded by El Salvador on American products imported into Nicaragua.↩
- Approved June 12, 1934; 48 Stat. 943.↩
- Foreign Relations, 1926, vol. ii, pp. 940, 943.↩