611.2231/212: Telegram
The Minister in Ecuador (Gonzalez) to the Secretary of State
[Received October 22—1:10 a.m.]
60. Referring to my telegram No. 57, October 8, 4 p.m. I have just received a long memorandum from the Minister for Foreign Affairs stating that the application of the Montevideo and Buenos Aires declarations on commercial policy was contingent upon the local economic situations permitting the same; that the declarations have not been ratified by the Government of Ecuador precisely because the economic situation obliged the adoption of a policy which would permit the payment of the appreciable invisible imports, that the Government of Ecuador is determined to make any sacrifice to encourage and strengthen commercial relations with the United States but that no exception can be made with regard to the trade balance clause since this would involve a complete change of policy; that the conclusion last year of the visa waiver agreement is proof of this special [Page 517] deference to the United States since it is more favorable to the United States because of the greater number [of] Americans travelling; that Ecuador practices most-favored-nation treatment with all countries whose balance of trade is favorable to it; that the preferential treatment granted by the United States to Cuba shows that exception must be made at times to the unconditional principle; that the unconditional principle is not applied by many American countries including Cuba which maintains three tariffs applying the maximum to Ecuador to which no objection has been made because it is felt that the policy is in conformity with Cuba’s economic interests; that in view of the foregoing the Government of Ecuador is confident that the United States will consider sympathetically the special conditions which obliged Ecuador to adopt its commercial policy and will take into account that the trade balance between the two countries will continue to be favorable to Ecuador and therefore will accept the principle which is of capital importance for the economy of the country. No reference is made to the formal commitment of last December.