611.3131/96: Telegram

The Minister in Venezuela (Nicholson) to the Secretary of State

27. My No. 26, March 29, 8 p.m. Foreign Office has raised objection to Articles 7, 8 and 9 of proposed trade agreement on the ground that language is too technical and difficult to reconcile with the experience, [Page 762] practice, or policy of Venezuela. After consultation with other interested departments it will submit an alternate draft of these three articles embodying the same principles but briefer and less technically worded.

The Foreign Minister states that he would be glad to have the Department now make public announcement of its intention to negotiate but that he is unable to conclude an ad referendum agreement on the general provisions or to assert that substantial agreement has been reached on the principles thereof until negotiations have actually taken place. While he believes personally that the provisions are in general acceptable, he maintains that in stating so officially he would be committing himself to formulas and principles which it might be desirable to modify during the course of negotiations, besides binding his Government to an agreement which must be submitted to Congress for ratification. He hopes that public announcement may be made simultaneously in Washington and Caracas at an early date after which he feels that he may appropriately consult the President and that rapid progress can be made in the conversations.

The Foreign Minister in a note dated April 6 and again orally today expressed the hope that the exchange control article as well as the tentative schedules will soon be available. He states that until the former is received he cannot proceed with his discussions of the agreement with other Cabinet Ministers.

Nicholson