611.1731/352
The Chargé in Nicaragua (Carrigan) to the Secretary of State
No. 935
Managua, April 5, 1938.
[Received April
11.]
Sir: I have the honor to refer to the
Legation’s despatch No. 901 of March 16, 1938, and to the Department’s
telegram No. 26 of March 25, 6 p.m.15 regarding the proposed delivery of an aide-mémoire to the Foreign Office regarding the
Trade Agreement as affected by the exchange of Notes of February 8,
1938.
Minister Long, on March 29, 1938, called on the Acting Foreign Minister
to discuss this matter with him and to present the aide-mémoire in accordance with the Department’s amendments. I
have the honor to enclose a copy of the aide-mémoire as delivered.
He made use of this opportunity to recall to the Acting Minister for
Foreign Affairs the question of the package tax, of the beer tax, and of
the municipal taxes. The Acting Foreign Minister said that he had told
the appropriate Nicaraguan authorities regarding these taxes and their
relation to the Trade Agreement, but that, presumably, they had not
clearly understood the situation. He said that he would
[Page 795]
again take up the matter and that he was
glad to have the aide-mémoire as it would be of
use in clarifying the situation.
Respectfully yours,
[Enclosure]
The American Legation
to the Nicaraguan Ministry for Foreign
Affairs
Aide-Mémoire
The American Minister called on the Acting Minister for Foreign
Affairs with reference to the status of the Trade Agreement as
affected by the exchange of Notes of February 8, 1938.
The American Minister mentioned the termination of Article 1 of the
Agreement and stated his understanding that the Nicaraguan
Government does not contemplate any increase in the basic rates of
duty set forth in Schedule I, nor with reference to the American
products therein mentioned, any increase in any of the charges
relating to importation into Nicaragua. For instance, under the
Nicaraguan tariff in effect just before the signature of the Trade
Agreement hog lard was dutiable at 12 centavos; these 12 centavos
were reduced to 10 centavos under the Agreement, and, in accordance
with the Note of February 8, Nicaragua will continue to charge 10
centavos. To clear the shipment, however, these 10 centavos will
require the payment of a number of “circulating” centavos of a
cordoba at a rate to be determined by Nicaragua: at present, 20
centavos (circulating currency) would be required, the rate now
being 200%. Another instance—the Consular Invoice Fee will remain at
3% on articles listed in Schedule I when imported from the United
States.
With respect to the first paragraph of Article 2 of the Trade
Agreement, the American Minister expressed his understanding that
its termination had resulted in no change in the customs treatment
accorded the Nicaraguan products enumerated in Schedule 2, upon
their importation into the United States.
Article IV of the Trade Agreement has not been modified by the
exchange of Notes. It provides—and continues to provide—that
articles of either country, when introduced into the other country,
shall be exempt from internal taxes, charges, or exactions other or
higher than those applied to like products of the other country or
of any third country. For instance, American beer shall be exempt
from any internal tax other or higher than that applicable to
Nicaraguan beer—and vice versa. Also, for example, American products
shall pay no higher municipal taxes (such as those of the National
District) than are paid by like articles of Nicaraguan origin—and,
again, vice versa.
Managua, D. N.,
March 29,
1938.
