611.2231/409: Telegram

The Minister in Ecuador ( Long ) to the Secretary of State

53. Department’s confidential telegram No. 29. After conveying substance to Minister for External Affairs he authorized me to say that 30 percent plan completely supersedes earlier import control regulations, which now may be totally disregarded, but that Ecuador’s commitments under recent exchange of notes will be maintained.

Minister Tobar is agreeable to publication by us of the release which accompanied Department’s instruction No. 126 on July 6 [Page 630] but says confidentially that Ecuador prefers not to publish in order to avoid difficulties with France. Doctor Tobar assures me that article 15, 30-percent plan will be administered impartially and that second paragraph of article 12 of our trade agreement will be respected.

As to article 29, (30% plan) Minister Tobar consulted Dr. Alejandro Ponce Borja, manager of Central Bank, who stated its provisions were designed to care for small amount of lowest grade coffee not salable elsewhere which is usually traded to Chile; adding that if we could use these screenings we would receive same treatment under article 29.

Will check up on coffee screenings and report later.