611.2231/441: Telegram

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

44. Your 61, May 20, 10 a.m. You should point out to the Foreign Minister that there is no escape clause in the agreement which would permit even temporary increases in duties on schedule products and that, therefore, such action could not be taken without formal modification of the agreement which, as mentioned in our 39, May 17, would be undesirable and time-consuming. You should therefore discourage this idea.

The quota plan we suggested should be effective and should present no serious administrative difficulties. Following consultation with and agreement by this Government, it would be necessary only to decree that imports of certain products from all countries would be restricted for a minimum period of 3 months to specified amounts [Page 864] equal to reasonable percentages of actual imports of the restricted products during a mutually agreeable previous period. The aim would be to spread the import restrictions over various products to the extent necessary to bring total imports within probable exchange availabilities.

Hull