611.3131/80: Telegram

The Chargé in Venezuela (Villard) to the Secretary of State

9. The Foreign Minister told me today he had been informed that a bill raising the excise tax on imported petroleum to one cent a gallon had been introduced in the United States Congress and probably would be reported favorably February 8. He said that he regarded this development as unfortunate on eve of negotiations for reciprocal trade agreement and that he was telegraphing the Venezuelan Minister in Washington to discuss matter with you as soon as possible.

While Venezuela is not seriously concerned at prospect of higher excise taxes in the United States for reasons mentioned in my telegram No. 84, December 16, noon,7 the Foreign Minister anticipates immediate active interest in the subject on the part of the larger oil companies. Standard Oil representative in Caracas has already inquired as to possibility of a trade agreement with Venezuela.

Villard
  1. Not printed.