611.3131/98: Telegram
The Secretary of State to the Minister in Venezuela (Nicholson)
17. Your No. 27, April 8, 1937. The Department does not take the position that agreement must be reached with respect to the text of the draft general provisions now under consideration by the Venezuelan Government; it is sufficient, prior to the announcement that a trade agreement with Venezuela is contemplated, that the Venezuelan Government agree to the broad principles underlying such provisions. You are requested to make this clear to the Venezuelan Foreign Minister and to inform him that the Department desires the Venezuelan Government’s agreement to such principles as the basis upon which negotiations will take place, subject, of course, to such ratification by the Venezuelan Congress as may be necessary.
From your telegram No. 26 of March 29, it appears that the Venezuelan Government will agree to the unconditional most-favored-nation principle as regards the United States; the first paragraph of [Page 763] your telegram No. 27, would seem to indicate that while there is not agreement on the part of the Venezuelan Government as to the language of Articles 7, 8 and 9, there is agreement as to the principles embodied in those Articles. You are requested to inform the Foreign Minister that when the Venezuelan Government has confirmed its agreement with respect to the indicated principles, and signifies its agreement to the other principles embodied in the general provisions, such as that underlying the Article on exchange control, which is being sent to you, the Department will be disposed to arrange a date shortly thereafter for the issuance here, and also in Caracas if the Venezuelan Government desires, of a public announcement that a trade agreement is contemplated. You should inform the Foreign Minister that, in accordance with established procedure, this announcement will include the statement that at a later date a second public announcement will be made here of the articles under consideration as subjects for concessions to be granted to Venezuela. This second announcement will constitute a formal invitation to our domestic interests to submit briefs with respect to the listed articles and will set a date for public hearings before the Committee for Reciprocity Information as required by the Trade Agreements Act. You should ascertain whether the Venezuelan Government has any objection to this procedure. In this connection you may point out to the Foreign Minister, if you deem it advisable, that the foregoing involve only our own procedure here and that it does not involve our making public announcement, prior to conclusion of the agreement, of the products on which we shall seek concessions from Venezuela.
Please inform the Department by telegram of the result of any conversations with the Foreign Minister in regard to the matters set forth herein.