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

Señor Chavez called to continue the discussion of April 22 regarding the general provisions. He indicated that the Peruvian Government had no changes to suggest in any of the provisions from Article IX to Article XV, inclusive, which covered everything with the exception of the final article relating to entry into force, duration and termination. We then prepared a draft of this article in accordance with the procedure followed in this country and that which Señor Chavez said would be in line with the procedural requirements in Peru for bringing the agreement into force. This draft appears in substantially the same form in the final draft of the agreement. It was agreed that the initial period of the agreement should be three years rather than two. This was the desire of the Peruvian Government, and I told Señor Chavez that there probably would be no objection to it here.

Señor Chavez indicated at the meeting today that the Peruvian Government had accepted all our proposals on Schedule II with the exception of course that they could not sign the agreement unless the reduction of 50 percent in the duty on long-staple cotton were included. I told Señor Chavez that his Government’s views on the question of the cotton would of course be brought up again before the Trade Agreements Committee.