617.003/243: Telegram

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

6. Your telegram No. 5, January 13, noon. You should inform the Foreign Minister that this Government is of the opinion that the collection of import duties on the products contained in Schedule I [Page 786] of the trade agreement in a greater amount of circulating cordobas than specified in that schedule would constitute a contravention of the trade agreement. If the Nicaraguan Government because of the financial difficulties with which it is confronted feels compelled to collect a greater amount of circulating cordobas on articles contained in Schedule I than are specified therein, and desires freedom of action for that purpose, this Government believes that some arrangement could be made whereby such freedom with respect to the duty bindings and reductions in Schedules I and II of the agreement could be provided for on comparatively short notice.

Although the Department fully appreciates the difficulties at present confronting the Nicaraguan Government, it desires you to urge that it take no action with respect to import duties on Schedule I products until such an arrangement can be worked out.