611.2531/664
Memorandum of Conversation, by Mr. H. Gerald Smith of the Division of Trade Agreements
Señor Gazitúa called to continue the discussions of the previous day on the general provisions. Mr. Fowler was unable to be present.
Regarding Article V, on monopolies and government purchases, which the Chilean Government had suggested eliminating from the text of the agreement, it was pointed out to Señor Gazitúa that compliance with the provisions of the Article would involve no changes of any kind in the existing situation in either country; the inclusion of the Article seemed appropriate in the agreement and served to formalize existing practices. It was, therefore, hoped that the Chilean Government would change its position and agree to the inclusion of the Article.
On Article VI, relating to customs procedure, the differences between the Chilean and the United States drafts were pointed out to Señor Gazitúa along the lines of the comment included in Mr. Fowler’s memorandum to the Chilean Undersecretary of Commerce, Señor Vigar.15 The hope was expressed that upon further study the Chilean Government would find it possible to accept the United States draft in its original form. Señor Gazitúa raised the question as to our position if his Government did not care to accept our proposals on Articles V and VI. He was informed that although the inclusion of Article V and Chilean acceptance of the United States text of Article VI were not absolutely essential to the conclusion of the [Page 678] agreement, we would very much prefer to have the Articles included in the manner which had been indicated.
With respect to Articles VII and VIII, the technical faults which Mr. Fowler had pointed out in his memorandum were once more mentioned to Señor Gazitúa.
Article IX, upon the elimination of which there seemed to be agreement in view of the inclusion of its provisions in Articles VII and VIII, required no comment.
With regard to Article X, it was noted that there was apparently no differences of substance in the views of the two Governments, but it was believed that the Spanish text of the Chilean draft might have to be slightly modified to bring out its meaning more clearly. Señor Gazitúa requested that the English text be also considered carefully, particularly the latter part, with a view to establishing its meaning with complete clarity.
- Not printed.↩