611.2231/257

The Minister in Ecuador ( Long ) to the Secretary of State

No. 82

Sir: With reference to my despatch No. 78 of June 30, 1938,17 regarding the trade agreement negotiations, I have the honor to report that the National Economic Council received me, accompanied by Mr. Gade and Dr. Banda, on July 3rd. I took occasion to emphasize the importance of the General Provisions, adding that the Schedules were tentative and could be taken up after an agreement had been reached on the former. In this connection I pointed out that the United States was asking for bindings on a very limited number of articles, under Article I, and did not wish to demand more than Ecuador could well afford to concede. Señor Intriago, the Chairman of the Council, expressed the earnest hope of his Government that an agreement could be arranged. He seemed to think that the General Provisions were not incompatible with the Ecuadorean import control system. He went on to say, however, that the question of some of the items on Schedule I would require careful study, particularly lard and flour. He said that his Government was somewhat reluctant to grant concessions on these important articles, especially on lard, [Page 527] as under the most-favored-nation clause they would have to be extended to other countries as well. He added that Ecuador would prefer to make concessions on articles on the Preferential Tariff or on products which would benefit the United States only. Dr. Banda pointed out that it was almost impossible to find such exclusive articles. Señor Intriago also mentioned automobiles, which, he hinted, might have to be restricted in some way as a luxury article, on account of the economic situation of the country. In conclusion he declared that the National Economic Council would give careful and sympathetic consideration to the proposed agreement and that we could discuss it again with them at a later date.

Respectfully yours,

Boaz Long
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