611.3131/124: Telegram

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

56. Tour telegram No. 97, October 4, 4 p.m. You should inform the Foreign Minister that, as has been stated on previous occasions, the Department has not considered it necessary that the two governments should reach definitive agreement on the general provisions prior to the public announcement of contemplated trade agreement negotiations. The Department has felt that once the two governments had agreed, as is now the case, on the broad principles underlying such provisions, there would be sufficient basis for negotiations and that any relatively less important points of differences between the two drafts could be composed during the negotiations. In view of the agreement already reached with respect to the unconditional most-favored-nation principle as applied to all forms of trade control measures, no insurmountable difficulties are foreseen which would prevent final agreement on the general provisions. It will be recalled that the Department did not request complete acceptance of its draft general provisions by the Venezuelan Government prior to preliminary public announcement. Nor has it examined the Venezuelan draft general provisions with a view to giving a final commitment with respect thereto prior to such announcement. The Department believes that the Venezuelan Government will agree that it would be difficult, if not impossible, for either government to attempt to reach complete agreement as to the general provisions before any consideration has been given to the schedules which will form an integral part of the agreement. Moreover, in the case of the Government of the United States, consideration must be given to any views [Page 786] which may be presented at the public hearing subsequent to public announcement before it will be in a position to enter into a definite commitment concerning either the general provisions or the schedules.

In view of the foregoing, the Department hopes that the Foreign Minister will agree to an early date for the simultaneous issuance in both capitals of public announcement that a trade agreement is contemplated, leaving the composition of any remaining differences between the two drafts of the general provisions to be worked out following such announcement.

For your information, the Department desires to make the preliminary public announcement as soon as practicable and if possible to issue the formal notice and complete the public hearings in the United States before the end of the year.

Hull