611.1731/146: Telegram

The Minister in Nicaragua (Lane) to the Secretary of State

6. Department’s telegram No. 2, January 10, noon. Nicaraguan Government (Minister of Hacienda and Doctor Federico Sacasa10) yesterday informally presented counter draft of Spanish text of general provisions. While the language is changed throughout to render Spanish text more idiomatic, the sense is the same except as follows:

In the last line, respectively, of articles 1 and 2 Nicaragua proposes that the words “of the signature of this agreement” be substituted by “on which this agreement enters into effect”.
Nicaragua prefers to have second sentence of article 4 omitted.
Nicaragua proposes omission of clause “and of converting currencies” in article 5.
In article 6 under paragraph 2 (a) Nicaragua proposes insertion of the following after “of this agreement”: “(2) related to public [Page 785] safety” (Thus the provisions under 2 (a) now numbered from 2 to 5, would be numbered from 3 to 6, respectively.)
In article 6 under 3 (b) Nicaragua proposes that the following be inserted after “the labor costs of production of such articles”: “; and those which arise from the measures of the Nicaraguan Exchange Control Commission for the purpose of maintaining the equilibrium of the balance of international payments”.
Paragraph 3 under article 6 may be retained as originally drafted.
Nicaragua proposes omission of following clause in article 7, paragraph 2: “unless the total quantity of such article permitted to be imported or sold, during a quota period of not less than 3 months, shall have been established, and”.
In the second paragraph of article 9 Nicaragua proposes that “prior to the establishment” be substituted by “during the period of the operation”.
Nicaragua proposes that the following sentence be added at the end of paragraph 1 of article 11: “Exceptions are also made with respect to legal provisions which Nicaragua may have to issue with respect to ports on its Atlantic coast because of special conditions in that region”.
In article 13 Nicaragua proposes the following redraft of paragraph 1:

“In the event that, upon the importation into the United States or the Republic of Nicaragua of articles the growth, produce, or manufacture in the other country there are noted in the documentation errors which may be considered as clerical or whose good faith may be established there shall not be imposed penalties in excess of $10 or the equivalent in cordobas the value of the latter necessarily to be taken into consideration”.

Article 17 Nicaragua proposes (a) that treaty shall remain in effect for 6 years instead of for 3 years and (b) that following paragraph be inserted after paragraph 1 of article 17:

“In the event of the application of such stipulations of articles 6, 9 and 12 as relates to the reasons which may give ground for the abrogation of this agreement sugar shall not be affected as provided in Schedule 2 nor shall (here would follow the products chosen by the United States from Schedule 1 and agreed upon as a compensation for the United States of America) be affected since it is agreed that these reciprocal concessions shall continue in any event in effect during the full 6 years of this agreement”.

Comment follows in subsequent telegram.

  1. Brother of President Sacasa.