Foreign Relations of the United States, Diplomatic Papers, 1937, The American Republics, Volume V

611.2231/215

The Minister in Ecuador (Gonzalez) to the Secretary of State

No. 957

Quito, November 10, 1937.
[Received November 18.]

Sir: With reference to my despatch No. 929 of October 21, 1937,⁵⁷ and previous correspondence, regarding the insistence of the Ecuadorean Government upon the trade balance clause in the proposed Trade Agreement, I have the honor to inform the Department that during a social visit I paid yesterday evening on the Chief Executive and his wife, the subject of trade came up, and General Enríquez declared that he regretted that the United States and Ecuador could not reach an agreement, since Ecuador was so poor and entirely dependent on its customs receipts that it was unable to make the necessary concessions. The Dictator went on to say that the most-favored-nation clause was so different from Ecuador’s policy that should Ecuador adopt it now, it would have to change all its treaties concluded with other countries. In reply, I pointed out the benefits of the most-favored-nation policy and called the General’s attention to the large number of countries with which the United States had already concluded agreements on this basis, which were proving mutually advantageous to the parties thereto. General Enriquez asserted that he would discuss the matter again with his Minister for Foreign Affairs.

Inasmuch as the Chief Executive does not seem inclined to change, on his own initiative, the policy of his predecessor in this respect, and as Sr. C. M. Larrea, the same Foreign Minister is in office under the present régime, it appears unlikely that the Ecuadorean Government will recede from its position regarding the trade balance clause.

Since transmitting my despatch No. 918 of October 7, 1937,⁵⁸ regarding the apparent discrimination against the United States on the part of Ecuador in granting import licenses, I have exchanged considerable correspondence with the Consul General at Guayaquil on the subject of commercial relations under the modus vivendi⁵⁹ and have recently requested him to report to the Legation all specific cases of discrimination which may come to his attention. In this connection, I should appreciate further instructions as to what action the Department wishes taken on individual cases of discrimination in the issuance of import licenses.

Respectfully yours,

Antonio C. Gonzalez

57. Not printed.
58. Not printed.
59. Provisional commercial agreement between the United States and Ecuador signed June 12, 1936, Department of State Executive Agreement Series No. 93, or 49 Stat. 4013; see also Foreign Relations, 1936, vol. v, pp. 484 ff.