611.3131/186
The Chargé in Venezuela (Braddock) to the Secretary of State
No. 988
Caracas, April 21, 1938.
[Received April
26.]
Sir: I have the honor to refer to my telegram
no. 34 of April 20, 4 p.m.,16 and to forward herewith a draft, with English
translation, of a note from the Minister of Foreign Affairs, proposing
the establishment of a modus vivendi to provide
for most-favored-nation treatment between the United States and
Venezuela pending completion of the trade agreement.
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In handing me this draft, Dr. Gil Borges explained that his only motive
in making the proposal was to regularize trade relations between the two
countries during the trade agreement discussions, so that the Venezuelan
Government might properly grant to American products the benefits which
it was extending to imports from other countries. He stated that this
Government could not well extend most-favored-nation treatment to the
United States in practice unless there existed some kind of written
agreement between the two countries which would provide for such
treatment. The agreement could take the form of a mere exchange of notes
which would not require the approval of the Venezuelan Congress. The
Foreign Minister indicated that any change in the text of the proposed
modus vivendi which the Department thought
desirable could undoubtedly be made.
As on a previous occasion, I communicated to the Foreign Minister the
Department’s point of view concerning the modus
vivendi as stated in its instruction no. 258 of April 5, 1938.
Dr. Gil Borges assured me the establishment of the modus vivendi would not complicate or delay the negotiations
on the trade agreement insofar as Venezuela was concerned, and he stated
that he would make every effort to expedite the negotiations as much as
possible.
With respect to my note of March 12, transmitting the memorandum which
accompanied the Department’s instruction no. 250 of March 7,17 the Foreign Minister informed me that his
reply to the text of the note had been ready for some time but that the
Minister of Hacienda had not quite completed his study of the
Department’s break-down of the Venezuelan list. Dr. Gil Borges mentioned
that it was a primary part of his Government’s economic plan of
development to make Venezuela as self sustaining as possible with
respect to its demand for food-stuffs, and that, in accordance with this
policy, the Venezuelan Government would probably have to restrict very
much any concessions it might be asked to make on imports of American
food-stuffs.
Respectfully yours,
[Enclosure—Translation]
Draft Note From the Venezuelan Minister for
Foreign Affairs (Gil Borges)
For the purpose of formalizing the result of the conversations which
I have had with Your Excellency, I have the honor to inform you that
the Government of Venezuela is disposed, pending the conclusion of
the reciprocal trade treaty which the two governments have under
consideration, to regulate the commercial relations between the two
countries by a modus vivendi on the basis of
the application of the
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most-favored-nation clause, in conformity with the following
articles:
Article I. The products of the soil or of
industry originating in and proceeding from the United States of
America shall enjoy, on their importation into Venezuela, in all
that relates to customs duties, accessory charges, methods of
collecting the said duties, as well as rules, formalities and
charges to which the operations of custom house dispatch may be
subject, the same benefits, privileges and immunities which may be
granted to similar products of the soil or of industry originating
in and proceeding from any other country.
Article II. The most-favored-nation treatment
provided for in the foregoing article shall not apply:
- 1.
- To the advantages now accorded or which may hereafter be
accorded by the United States of Venezuela or by the United
States of America to adjacent countries in order to
facilitate frontier traffic. Neither shall it apply to
advantages resulting from customs unions to which the United
States of America or the United States of Venezuela may
become a party.
- 2.
- To the advantages now accorded or which may hereafter be
accorded by the United States of America, its territories or
possessions or the Panama Canal Zone or the Republic of Cuba
to one another. The provisions of this paragraph shall
continue to apply in respect of any advantages now or
hereafter accorded by the United States of America, its
territories or possessions or the Panama Canal Zone to one
another, irrespective of any change in the political status
of any territory or possession of the United States of
America.
Article III. The products of the soil or of
industry of one of the Contracting Parties, after being imported
into the territory of the other Contracting Party, may not be
encumbered with taxes, contributions or tributes greater than those
levied or which may be levied on similar foreign products or
articles.
Article IV. In the event there is now or may
in future be established, for reasons of an economic nature, some
form of quantitative restriction or control on the importation or
sale of any article in which the other country may be interested,
or, upon the importation or sale of a certain amount of any article,
the importations originating in and proceeding from the territory of
the other Contracting Party shall be granted a treatment both just
and as favorable as possible to the products affected, taking into
account the statistics of normal interchange between the two
countries and the total amount of the quotas to be fixed for each
product.
Article V. The provisions of the present
Agreement shall not apply to the Philippine Islands, the Virgin
Islands, American Samoa, the Island of Guam, or to the Panama Canal
Zone.
The products of the soil or of industry which originate in and are
exported directly from Venezuela to Puerto Rico and from Puerto
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Rico to Venezuela are
subject to the provisions of the present Agreement.
Article VI. This modus
vivendi shall remain in force for the period of one year
counting from its date, but each of the Contracting Parties reserves
the right to terminate it, and in the latter case its effects shall
cease ninety days following the notice of termination in
writing.
Article VII. A report of this modus vivendi shall be submitted to the
National Congress during its next sessions, in conformity with the
provisions of Article 17 of the Tariff and Customs Law of
Venezuela.
