622.116/122: Telegram
The Minister in Ecuador (Long) to the Secretary of State
[Received August 24—9:55 a.m.]
191. In reference to the Department’s telegram number 118, August 21, 6 p.m., the Commercial Attaché and I have just had a long discussion with the Minister for Foreign Affairs and the Director of Exchange Control Commission who regret that it was not possible to give exporters advance notice regarding exchange permits for certification of export documents. The Foreign Minister will telegraph Ecuadoran Consuls for lists of exporters who have submitted documents from August 9 to date with a view to studying means of minimizing any losses suffered by them as a result of these shipments.
Both pointing [pointed?] out that excessive shipments have been received which did not have previous authorization for exchange as provided by law. These are especially heavy from Japan and to grant an exemption from the regulations would result in further congestion of customs with merchandise for which there would be no guarantee that exchange could be granted. They explained that the measure was actually a protection to exporters since payment was thus guaranteed. Many shipments now being held up were presumably ordered in violation of the requirement that authorization for exchange be obtained in advance. If the Department’s proposal to delay application of requirements for 2 weeks were accepted it would, according to Ecuadoran officials, defeat the purpose of the exchange control and probably it would be difficult or impossible to obtain exchange to cover payments with consequent heavier losses to exporters than those from charges now accruing at seaboard.
Exporters should be notified to require notice of confirmed credit from Central Bank or copy of authorization for exchange prior to making any shipment to Ecuador, presenting same with documents for consular certification.