The Minister in Nicaragua (Lane) to the Secretary of State
[Received February 26—2:35 a.m.]
39. My 38, February 24, 6 p.m.; and Department’s 16, February 24, 9 p.m.
- Point 1. As reported in my 3633 I have endeavored to make our position clear and shall do so again in the light of Department’s 16.
- Point 3. Nicaragua will accept article 5 with memorandum as
stipulated in Department’s 16, provided it reads as follows:
“Article 5 of the proposed trade agreement is designed to safeguard the concessions exchanged by preventing changes in the bases and methods of determining dutiable value or of converting currencies (for customs purposes) which would be less favorable to importers than the bases and methods employed as of the date of signature of the agreement. The bases and methods of determining dutiable value and of converting (for customs purposes) the currency of the other country into terms of the national currency do not, of course, affect in any way the right of either country to apply the official rate of exchange in the collection of customs duties.”
- Point 7. At meeting this afternoon at which Castro and Vita were present it was intimated that if above-mentioned memorandum (on point 3) would contain paragraph on point 7 regarding article 7 substantially as transmitted in Department’s 14, February 22, 8 p.m., Nicaragua would accept article 7 as drafted.
- Point 8. (a) With reference to the Department’s telegram 15, February 24, 8 p.m., Nicaragua accepts the phraseology “in a previous representative period prior to the establishment of any exchange control.” (b) I have just received Department’s 17, February 25, 7 p.m., and have not had opportunity as yet to discuss matter anew with Nicaraguan negotiators.