611.1731/347

The Department of State to the Nicaraguan Legation

Memorandum

Reference is made to the inquiry of the Minister of Nicaragua concerning the statement appearing in the last paragraph of the Department’s press release of February 10, 1938, regarding the partial termination of the trade agreement between Nicaragua and the United States, to the effect that “the tariff concessions granted by the United States to Nicaragua in the trade agreement will cease to be in force on and after March 10, 1938.”

The above statement is correct. However, the eleven tariff concessions granted to Nicaragua in the trade agreement consisted, with one exception, of bindings on the free list. Therefore, though the bindings to Nicaragua have been terminated, products imported from that country under these tariff classifications will continue to enter the United States free of duty. It may also be noted that, with one exception, all the concessions consisting of bindings, granted to Nicaragua, were also included in agreements with other countries.

The other commodity, on which a tariff concession consisting of a reduction of 50 percent in the former rate of duty was granted to Nicaragua will, when imported from that country, continue to enter the United States at the reduced rate, as that reduction was also granted to a third country in another agreement.

In practice, therefore, termination of the tariff concessions granted to Nicaragua in the trade agreement will result in no change in the tariff treatment accorded the products contained in Schedule II of that agreement, when imported into this country from Nicaragua.