611.2231/103
The Chargé in Ecuador ( Sparks ) to the Secretary of State
[Received January 27.]
Sir: With reference to previous despatches reporting the desire of Ecuador to obtain a reduction in the existing customs duties on naranjilla juice imported into the United States, I have the honor to state that steps are now being taken with a view to cultivating this fruit on a large scale for export purposes. A company has already been organized, “Compañía Naranjillera del Ecuador, S. A.,” which has concluded with the Government of Ecuador a contract providing for the special privileges authorized by the Law of October 5, 1921,22 for companies attempting to establish new industries in the country. This contract is published in the Registro Oficial No. 377 of December 30, 1936, the date of the agreement. Under the terms of the contract the company is exempted for a period of ten years from the payment of import duties on all machinery and supplies necessary for the development of the industry, and of export taxes.
I am informed that Dr. Guerrero Martinez, who holds the fishing and hunting concession in the Galapagos Islands, is at present negotiating with the company. It is understood that he would attempt to interest a large American company which would furnish the capital necessary to develop immediately the cultivation of the naranjilla on a large scale. The said company would undertake to introduce the naranjilla in the United States and commit itself to purchase the entire output of the Ecuadorean company. Dr. Guerrero [Page 485] expressed the belief that the bases exist for a mutually profitable business provided that a substantial reduction can be obtained in the present import duties on fruit juices.
In view of the foregoing and previous conversations I have had with the authorities on this subject, it is my opinion that Ecuador will exhibit considerable interest in obtaining a reduction in the present duties on naranjilla juice which are understood to be seventy cents per gallon, plus five dollars per proof gallon on the alcoholic content. I further believe that if it is at all feasible to grant an appreciable concession on this article, it will facilitate considerably obtaining concessions in this country on articles in which we may be interested.
Respectfully yours,
- Ecuador, Anuario de Legislación Ecuatoriana, 1921, pt. i (Quito, 1922), p. 158.↩