Memorandum of Conversation, by Mr. H. Gerald Smith of the Division of Commercial Policy and Agreements

Participants: Señor Juan Chavez, Commercial Counselor of the Peruvian Embassy
Mr. Hawkins15
Mr. Smith

Señor Chavez called at his request to discuss several questions in connection with the proposed trade agreement.

With respect to cotton, Señor Chavez mentioned the difficulties now facing Peru particularly as a result of the closing of the Japanese market which had provided the largest outlet for Peruvian cotton during the past year. It was essential, therefore, Señor Chavez said, that the proposed trade agreement include as liberal a concession as possible on this commodity. Mr. Hawkins indicated to Señor Chavez that the question of a concession on cotton was receiving thorough and active consideration and although the Department of State was entirely sympathetic toward the request of the Peruvian Government, it was anticipated that considerable difficulties would be encountered from certain of the agencies in the Department of Agriculture.

Replies were given to Señor Chavez on a number of questions which he raised concerning the information to be presented in the form of written briefs and at the public hearings.

Señor Chavez was informed that we hoped to be able to give him a revised draft of general provisions no later than January 14 and hoped to be able to place in his hands a preliminary and tentative Schedule I list by the end of the present week.

Señor Chavez stated that the desire had been expressed by certain of the Peruvian officials that the trade agreement negotiations be conducted in Lima. Mr. Hawkins stated that this was a question on which a definite answer could not be given immediately.

  1. Harry C. Hawkins, Chief of the Division of Commercial Policy and Agreements.