611.1731/159: Telegram

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

36. Referring to my telegram No. 34, February 23, 4 p.m. and to my telephone conversation with Duggan on February 22 and 23. The following is a résumé of standing of negotiations as of last evening, considering the numbered points in the order of the Department’s telegram No. 13, February 21, 7 p.m.

It is agreed that by means of an exchange of notes Nicaragua will assure us that there will be no changes in the sense of articles 1 and 2 between date of signature of agreement and the date it comes into force. For our part, we accept the Nicaraguan proposal stated in number 1 of my telegram No. 6, January 25, noon. (As a result of conversation of today with Duggan and Fowler,24 I shall this afternoon withdraw our informal acquiescence with Nicaraguan proposal.)
Nicaragua agrees to withdraw proposed omission of clause “and of converting currencies” and we are to assure her by an exchange of notes that “these bases and methods shall not affect the fixing by the Government of Nicaragua of the official rate of exchange of currencies”. The last quoted clause reads thus in Spanish: “Estos bases y metodos no afectaran la fijacion por el gobierno de Nicaragua del tipo official del cambio de monedas”. (As a result of conversation of today, I shall propose to Nicaraguan negotiators today that in lieu of exchange of notes memorandum explaining this article and embodying foregoing clause be submitted by us.)
In the light of my conversation with Duggan yesterday I subsequently requested Nicaraguan negotiators to withdraw their objections.
I am awaiting instructions on this point.
Nicaragua agrees to point No. 10 and accepts article 13 as drafted (see my telegram 34).

I have carefully informed the Nicaraguan negotiators Federico Sacasa and Francisco Carboy, separately and together, that the Department hopes that Nicaragua will not make the signing of agreement under negotiation the occasion for denouncing trade agreements with other countries. I feel reasonably certain, however, that Nicaragua will denounce such agreements and will follow the bilateral principle in making new agreements.

Referring to point 3 in the Department’s telegram No. 14, February 22, 8 p.m., the pertinent section of the Nicaraguan law comparable to section 522, Tariff Act of 1930,25 is title 4, article 1154 of the Commercial Code.26 Crampton27 states that no regulations governing the administration of that title have been issued.

While understanding the Department’s position, I should appreciate having telegraphic instructions for the sake of the record with respect to point 11 (b) (see my telegram 35 of today).

  1. Presumably William A. Fowler of the Division of Trade Agreements.
  2. Approved June 17, 1930; 46 Stat. 590, 739.
  3. Nicaragua, Laws, Statutes, etc., Codigo de Comercio de la Republica do Nicaragua (Managua, 1916), p. 291.
  4. William J. Crampton, Deputy General Collector of Customs and Auditor.