611.3131/115: Telegram
The Secretary of State to the Minister in Venezuela (Nicholson)
48. Your telegram No. 87, August 30, 5 p.m. You are requested to inform the Foreign Minister that the Department is gratified that substantial agreement has been reached.
It is felt, however, that the reservation which the Venezuelan Government apparently desires to make with respect to Puerto Rico and the Virgin Islands (particularly in so far as it relates to the 30 percent customs surcharge question) would constitute an important derogation from the principle of most-favored-nation treatment. You should point out to him that in accordance with the long-established policy of this Government, all areas under the sovereignty and authority of the United States are included in the most-favored-nation assurances of the commercial treaties and agreements of the United States. Furthermore, you should point out that Puerto Rico is a part of the customs territory of the United States and, as such, is included within the scope of the duty concessions, given by the United States in trade agreements. The President himself has recently expressed in strong terms his view that no distinction should be made between citizens of the United States living on the mainland and citizens in our territories [Page 782] and insular possessions. It would therefore be most difficult for the Department to justify the drawing of such a distinction in a trade agreement.
Please inform the Department at the earliest possible moment of the reaction of the Venezuelan authorities to this statement and report whether the situation described in your despatch No. 322 of June 18, 1936,22 continues unchanged.
For your own information, issuance of the preliminary announcement is being deferred until a further study has been made of the 30 percent surtax question. Should the Venezuelan authorities inquire as to the Department’s plans with regard to the announcement, you may say that the Department continues to be desirous of issuing it at the earliest moment, but in view of the importance of this matter in relation both to the unconditional most-favored-nation principle and the established policy of the Government of the United States towards its territories and insular possessions, the Department believes that the Venezuelan Government will understand the necessity for some further study and discussion of this matter prior to public announcement of contemplated negotiations.
- Not printed.↩