631.003/516: Telegram

The Minister in Venezuela (Nicholson) to the Secretary of State

67. My 66, September 24, 3 p.m. In renewed discussion this morning, the Foreign Minister stated that conversations were continuing with Minister of Finance and that he hoped to reply to my representations early next week. He repeated his assurances of anxious concern not to disturb existing amicable trade relations between Venezuela and the United States but stressed desire of Finance Ministry to increase revenue through higher tariffs and to curtail importation of luxury goods including automobiles.

Meanwhile, Chamber of Deputies in second reading of tariff bill has approved the proposed high duties on passenger cars. While the Foreign Minister personally views this move with regret, I am not optimistic as to his ability to bring about a substantial reduction in the proposed increases on American export products.