611.2531/579b: Telegram

The Secretary of State to the Ambassador in Chile (Bowers)

163. Department’s instruction no. 48, November 29. Definitive offers were presented to the Chilean Embassy today on the following products, identified by tariff paragraphs:

735, fresh apricots, one quarter cent per pound, December 1 to last day of February, inclusive; 745, fresh peaches, one quarter cent per pound, January 1 to April 30, inclusive; 745, fresh nectarines, one quarter cent per pound, January 1 to April 30, inclusive; 748, fresh plums, one quarter cent per pound, December 1 to March 31, inclusive; 752, honeydew melons, 17 and one half percent ad valorem, December 1 to April 30, inclusive; 767, lentils, bind existing rate of one half cent per pound; 769, chickpeas or garbanzos, dried, one cent per pound on sizes of 50 grains and more per 30 grams; 770, garlic, one cent per pound, March 1 to May 31, inclusive.

Also the following free list bindings:

1669, soap bark or quillaya; 1681, nutria furs and fur skins; 1685, guano; 1685, potassium-sodium nitrate mixtures; 1698, iodine, crude; 1700, iron ore, including manganiferous iron ore; 1766, sodium nitrate, crude or refined; 1766, sodium sulphate, crude, or crude salt cake; 1777, sulphur in any form, and sulphur ore.

The following offer was also made, subject to the conclusion of the Argentine agreement prior to the conclusion of the Chilean agreement:

742, grapes in bulk crates, barrels or other packages, 15 cents per cubic foot of such bulk or the capacity of the packages, according as imported, March 1 to June 30, inclusive.

The foregoing offer was also made subject to the condition that this government might find it necessary to restrict it to other than hothouse grapes and modify the seasonal period.

The descriptions of the products listed above are not in the exact form in which they will appear in the agreement, but changes will not affect the substance of any concession offered.

For your confidential information, bindings may be offered on the following products if the Chileans insist:

52, spermaceti wax; 1611, argols, etc.; 1611, calcium tartrate; 1681, raw lamb and sheep furs; 1765, raw sheep and lambskins. These items are not included in the original offers because of Chile’s minor importance as a supplier.

A reduction in the tax on copper definitely cannot be granted.

The above items cover all those appearing in the public notice of October 2 except pears, which had been rejected as a concession for [Page 428]Argentina, a much more important supplier than Chile, onions, on which no concession was possible on account of a crop surplus here and purchases of excess stocks by the Surplus Commodity Corporation, and beans, which are discussed below.

The foregoing offers are subject, of course, to Chilean acceptance of our Schedule I requests, which will be sent you shortly, and to agreement upon the general provisions.

The Department transmitted to you by pouch on December 6 the text of the note proposed for presentation to the Chilean Ambassador containing our Schedule Two proposals, which included an offer on beans. Subsequently the Trade Agreements Committee reconsidered that offer and voted that it should not be proposed to the Chileans. In transmitting the proposals outlined above to the Chileans, therefore, you should omit beans. If asked to explain the absence of that item, give the same reason as noted above for onions.

Please convey the appropriate parts of the foregoing to the Chilean officials as soon as possible, stressing most strongly the need for expeditious consideration of our proposals, both those above and on the general provisions. Please keep the Department currently informed by telegraph of developments.

Hull