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  4. Document 882

611.3131/176: Telegram

The Secretary of State to the Minister in Venezuela ( Nicholson )

Washington , March 9, 1938—6 p.m.

13. The Department’s instruction No. 250, enclosing a memorandum for presentation to the Venezuelan Foreign Minister embodying this Government’s views on the Venezuelan Government’s revised list of products, was sent you by air mail on March 7. This Government is now prepared to publish the products comprised in group 1 of that memorandum. If the Venezuelan Government acquiesces in the publication of those products by this Government in connection with this Government’s second public announcement, the Department is prepared to set a date at once for the issuance of that announcement [Page 965] and will inform the Venezuelan Government of such date.

For your information the Department is most anxious that the trade agreement be negotiated with the least possible delay, both in order to bring the negotiations to a successful conclusion and because of the increasing trend towards bilateralism indicated on the part of the Venezuelan Government.

With respect to the Venezuelan Government’s position regarding the rule of principal supplier as set forth in its memorandum of February 25, 1938, transmitted with the Legation’s Despatch No. 944 of the same date, you should point out to the Foreign Minister and, if you deem it advisable, to other Venezuelan officials that according to United States import statistics Venezuela is a principal or important source of the products which this Government is now prepared to publish and which, as stated, account for approximately 93 percent of the value of Venezuela’s exports to the United States in 1936.

With respect to products of which Venezuela is not a principal or important source of imports into the United States, you should insure a complete understanding on the part of the Venezuelan officials that under a trade agreement embodying the unconditional most-favored-nation clause, such products would be assured of receiving the benefits of all concessions that have been or will be granted thereon in trade agreements with other countries.

Please keep the Department promptly advised of any conversations you may have with Venezuelan officials in regard to the foregoing.

Hull