611.1731/182: Telegram
The Secretary of State to the Minister in Nicaragua (Lane)
34. Your telegrams 58 and 59. Castro’s counterproposals seem satisfactory but final approval by the Trade Agreements Committee cannot be obtained today. As regards Castro’s conditions: (1) the drawback provision included in article II of the trade agreement with Haiti is all that we can do on sugar (see Department’s 31 of yesterday47); if no alternative, we will accept condition (2) on the understanding that we will enjoy the present 25 per cent discount on items 799 and 800 as long as any third country does; (3) Article X of the trade agreement itself adequately covers this point and no further assurance necessary.
Your 58 states Nicaragua offers to bind 799 E at 14 centavos (on which we understand rate is now 7) and does not mention 799 F. Please clear this up and report status of Notes 1 and 2 in Schedule I.
If you can clear text by tomorrow morning every effort will be made to permit you to sign Wednesday.
- Not printed.↩