611.3131/122: Telegram
The Secretary of State to the Minister in Venezuela (Nicholson)
53. Your telegrams Nos. 93 and 95, September 18 and 25. You are requested to inform the Foreign Minister, at the earliest opportunity, that the Department is gratified by the willingness of the Venezuelan Government to withdraw its reservation with respect to raw and industrial products of Puerto Rico. This Government understands the withdrawal of this reservation to mean that the Venezuelan Government, under a trade agreement, would accord most-favored-nation treatment to products, the growth, produce or manufacture of Puerto Rico exported to Venezuela, and in conformity therewith, would remove the 30 percent surcharge from such products. This Government is happy to accept this offer of the Venezuelan Government even though it does not fully meet this Government’s desires in the matter.
Although the Foreign Minister’s Note, quoted in your telegram No. 93, makes no mention of the Virgin Islands, it is thought that the omission may be unintentional in view of your telegram No. 89 of September 8. You should inquire as to this and inform the Foreign Minister that it is hoped that the Venezuelan Government’s intention is to extend to products originating in the Virgin Islands treatment [Page 784] similar to that extended to Puerto Rican products. If you find that the omission of the Virgin Islands was intentional, you should point out the negligible amount of exports from the Virgin Islands to Venezuela, and the undesirability of the products of the Virgin Islands receiving different treatment from that accorded Puerto Rican products. In the event the Foreign Minister appears disinclined to yield with respect to the Virgin Islands, you should inform him that, in view of the relatively minor importance of the matter, this Government is willing to leave the question of the Virgin Islands for further discussion during the negotiations.
Inform the Foreign Minister that the Department is prepared to issue preliminary announcement of contemplated negotiations within the next 10 days, if agreeable to the Venezuelan Government. In the event the Venezuelan Government wishes to make a simultaneous announcement at Caracas, the Department will inform you of the exact date of the issuance of the announcement here.
The preliminary announcement will include the statement that at a later date public announcement will be made of the products 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 products and will set a date for public hearings before the Committee for Reciprocity Information. Meanwhile, it is expected that negotiations will actively be proceeding with a view to the conclusion of an agreement as soon as practicable following completion of the above-mentioned public hearings in this country which the Trade Agreements Act requires.
If you find it advisable, you may point out to the Foreign Minister that the foregoing involves 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.
Press despatch published September 22 in Crítica to the effect that announcement has been made is incorrect.