611.3131/95: Telegram
The Minister in Venezuela ( Nicholson ) to the Secretary of State
[Received 8:36 p.m.]
26. Department’s 16, March 26, 6 p.m. Foreign Minister has agreed to postpone consultations with Chamber of Commerce until the Department has issued public announcement of intention to negotiate trade agreement. He states that he regards all conversations concerning the general provisions as strictly confidential.
With respect to the hesitation on the part of the Venezuelan authorities in regard to the unconditional most-favored-nation principle it is the Legation’s impression that this is due to an unwillingness to enter into any such commitment with nations imposing quotas or other restrictions on Venezuelan goods. In this connection, it is believed that the authorities have particularly in mind such countries as Italy, France, and Germany which feel free to demand favors from Venezuela but which at the same time make difficulties in the importation of Venezuelan products.
While this has apparently created an antagonistic attitude toward most-favored-nation treaties, the Foreign Minister upon specific questioning has now affirmed that in the case of the United States there would be no objection to embodying the unconditional clause in a trade agreement.
Venezuelan authorities are making progress in their study of the general provisions but are handicapped by the lack of technical staff. The Foreign Minister feels that the language is complicated and difficult to understand and that the terms cannot be considered as a whole until the article on exchange control is received.