611.1731/176: Telegram

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

51. My 50, March 4, 7 p.m.

A.
At this morning’s conference Minister of Hacienda confirmed yesterday’s decision regarding wheat flour and industrial machinery and definitely agreed to bind upper leather (less 25 per cent as at present) and to reduce duty on lard from 12 to 8 centavos. He, likewise, would be willing to bind all other articles on Schedule 1 but did [Page 809] not agree to deduct 25 per cent from duty on canned vegetables, canned fruits, and dried fruits.
B.
Nicaraguan negotiators inquired why pineapples and rum cannot be included in Schedule 2 in accordance with Honduran and Haitian agreements, respectively, in view of coffee (which they state Honduras does not export) being included in Honduran Schedule 2. In this connection and in response to Department’s instruction No. 407 of February 27, it would, in my opinion, be most helpful to Nicaraguan Government to include in an exchange of notes those concessions of interest to Nicaragua selected from other trade agreements but which cannot be written into Schedule 2. Such a procedure would seem to dispose of Nicaraguan inquiry regarding pineapple and rum. Telegraphic instructions would be appreciated on this point.
Lane