611.3131/160: Telegram
The Secretary of State to the Minister in Venezuela (Nicholson)
71. Your telegram no. 109, December 11, noon. You should point out to the appropriate Venezuelan officials that, in possible anticipation of the Venezuelan list, the products under consideration by this Government for possible trade agreement concessions to Venezuela, constituted in 1935 more than 90 percent in value of total United States imports from Venezuela. On the other hand, the products contained in this Government’s tentative list, handed the Venezuelan Government, on which trade agreement concessions may be requested from Venezuela, constituted in 1935 only about 41 percent of United States exports to Venezuela.
According to United States figures total imports into the United States from Venezuela in 1935, were valued at $21,455,377. Products under consideration by this Government for possible reductions and [Page 795] bindings in import taxes in a trade agreement with Venezuela, were valued at about $19,610,000 in 1935.
Total United States exports to Venezuela in 1935 were valued at about $18,390,000. The products contained on this Government’s tentative list, on which either bindings or reductions may be requested from Venezuela, were valued at about $7,585,000 in 1935.
From the above figures it is evident that this Government has not approached the question of granting or requesting duty concessions on the basis of a narrow balancing of volume of trade involved in concessions granted and concessions obtained. In fact to do so would be inconsistent with this Government’s policy as embodied in trade agreements.
The policy of this Government in negotiating trade agreements is to obtain the reduction or amelioration of restrictive barriers to international trade and thereby expand trade along natural lines. In considering possible trade agreement concessions, this country has in general followed the rule of principal supplier. In selecting the products included in its tentative list for submission to the Venezuelan Government, this Government was largely guided by this country’s position in regard to such products, in the Venezuelan market. It is to be expected that the Venezuelan Government will include in its list, now being prepared, those products of which Venezuela is a principal supplier in the United States market and with respect to which it desires to maintain or increase its position in that market.