611.1731/173: Telegram
The Minister in Nicaragua (Lane) to the Secretary of State
[Received 10:58 p.m.]
50. My 48, March 3, 9 p.m. The four most important articles (as listed in Department’s instruction No. 305 of August 3, 1935)43 on Schedule 1 were discussed this morning. Minister of Hacienda agreed to bind wheat, flour, and industrial machinery, and intimated he would bind upper leather. As to lard, he said he would approve reduction from 12 to 10 centavos per net kilo instead of 8 centavos as proposed by us (Castro said that proposed tariff provides for duty of 18 centavos). We trust we can obtain concession desired on lard and assurance on upper leather. In this connection I submit the following:
Due to the present very uncertain position of the Government44 they are fearful lest treaty will be made basis for attack on the part of Chamber of Deputies and press. Despite obvious advantage to Nicaragua in binding coffee and bananas, there are three points which may make passage of agreement difficult if not impossible:
- 1.
- Lack of concession on sugar.
- 2.
- Only one duty reduction conceded by us.
- 3.
- Greater number of articles on Schedule 1 than on Schedule 2.
If we would accept reduction solely on lard and bind all other articles on Schedule 1, we would obtain over 75 per cent of the value of the total concessions and bindings desired and at the same time serve to counteract erroneous impression that we are imposing treaty disadvantageous to Nicaragua (as Department is aware we are granting only one reduction in Schedule 2 as submitted).
- Foreign Relations, 1935, vol. iv, p. 824.↩
- See section entitled “Revolution in Nicaragua,” pp. 815 ff.↩