611.2531/282
The Secretary of State to the Chargé in Chile (Frost)
Sir: Reference is made to the Embassy’s despatch No. 930, dated March 24, 1938,37 and previous communications, regarding a trade agreement with Chile.
With respect to the most difficult question, that of the article on exchange control in the general provisions, the Department has for the past fortnight been giving most careful consideration to the Chilean proposal38 enclosed with the Embassy’s despatch No. 927 of March 22, 1938, but as yet has been unable to reach a decision. It is hoped within a short time, however, to be able to send you instructions in regard to this matter.
The two questions raised in the Embassy’s despatch No. 930 on which an immediate reply is requested relate to reference number 15 of the standard general provisions, and the supplying of detailed statistics covering United States trade with Chile in 1937.
With respect to the former question, you may inform the Chilean officials that it would be impossible for this Government to include in a trade agreement any provision which would be equivalent to Article III of the proposed Sanitary Convention between the United States and Argentina.39 It will be recalled that Section 306 (a) of the Tariff Act of 193040 provides as follows:
Sec. 306 Cattle, Sheep, Swine, and Meats—Importation Prohibited in Certain Cases
“(a) Rinderpest and Foot-and-Mouth Disease.—If the Secretary of Agriculture determines that rinderpest or foot-and-mouth disease exists in any foreign country, he shall officially notify the Secretary of the Treasury and give public notice thereof, and thereafter, and until [Page 446] the Secretary of Agriculture gives notice in a similar manner that such disease no longer exists in such foreign country, the importation into the United States of cattle, sheep, or other domestic ruminants, or swine, or of fresh, chilled, or frozen beef, veal, mutton, lamb, or pork, from such foreign country, is prohibited.”
The proposal of the Chilean Government would appear to involve the necessity of modifying the foregoing section of the Tariff Act, and it is the opinion of the Department that authority does not exist, under the Trade Agreements Act or otherwise, for such modification by executive action. It would appear necessary, in order to make the modification required by the Chilean proposal, either to secure revision of the above section of the Tariff Act, requiring approval by both Houses of Congress, or to enter into a special convention with Chile, subject to ratification by the Senate, along the lines of that signed with Argentina. The possibility of either action does not appear favorable at the present time.
With respect to the request of Chilean officials for detailed statistics covering trade between the United States and Chile during 1937, it has been ascertained that such statistics are still in code books and have not been assembled or published. The transcription and assembling of these statistics, it is estimated, would require the services of one person for several weeks, and in view of the pressure of work it is not believed this can be undertaken at the present time.
The Department will, as soon as possible, instruct you with respect to the other questions concerning the general provisions of the proposed trade agreement.
Very truly yours,