The Secretary of State to the Minister in Nicaragua (Lane)
15. Point 8, Department’s No. 14, February 22, 8 p.m., and your telephone call with Duggan of February 24.29
Definition of “previous representative period” as one prior to establishment of exchange control regarded as of vital importance from point of view of principle involved, namely, non-discriminatory treatment. As soon as exchange is controlled arbitrary decisions, which are in practice frequently discriminatory, must be made in regard to the allotment of exchange. It is exceedingly important to us that Nicaragua accept the article as drafted and thus help us establish the principle of non-discriminatory treatment in respect of exchange control.
For your own information, although Nicaragua has not diverted an important volume of trade away from the United States in favor of third countries since exchange control established, other countries have done so.
- Memorandum of conversation not printed.↩