611.1731/160: Telegram

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

38. My 36, February 24, 3 p.m. Following is result of conference this afternoon.

Nicaragua withdraws its proposed amendment and accepts articles 1 and 2 as drafted by us.
Nicaragua accepts our counter-proposal with respect to article 5 that is submission by us of memorandum explaining purpose of article and stating that “these bases and methods shall not affect the fixing by the Government of Nicaragua of the official rate of exchange of currencies.”
Due to the absence of Dr. Vita today no decision has been reached.
With respect to Nicaraguan proposal as transmitted in my 28,28 Nicaragua would agree to withdraw proposal provided we would include, in memorandum mentioned under point 3 supra, the following:

“No provision of the agreement requires the abolition nor even the liberalization of exchange control. The treaty provides only that the [Page 798] control be administered in a non-discriminatory manner (against the United States).[”]

Foregoing language based on point 5 of Department’s telegram No. 6. February 7, 2 p.m.

Foregoing drafted prior to conversation with Duggan this afternoon.

  1. February 18, 11 a.m., p. 789.