Foreign Relations of the United States: Diplomatic Papers, 1943, The American Republics, Volume V

811.20 (D) Regulations/9893

The Secretary of State to the Minister in Costa Rica (Scotten)

No. 775

Washington, April 7, 1943.

The Secretary of State refers to the Legation’s airgram no. A–446 of February 25 concerning the operation of Decentralization Plan “A” in Costa Rica. In as much as the Board of Economic Warfare is coordinating matters of procedure under Plan “A”, the airgram under reference was referred to that agency which has furnished the following reply:

“It is gratifying to learn that the Costa Rican authorities anticipate few difficulties in putting the decentralization plan into operation as most materials imported from the United States have previously required a Certificate of Necessity or a Certificate of Essentiality. Kindly extend to Minister of Finance Carlos Escalante this Government’s sincere appreciation for his splendid cooperation.

“With reference to the four operational problems mentioned in the airgram under reference, the Legation is informed as follows:

A. On investigation it is found that much of the equipment and material required by the Pan American highway has moved by Army transport under GUS license, while the rest has gone under individual or general license, like cement, in regular commercial ships. Unfortunately, Form BEW–138, application for freight space certification, does not show end-use, so that it is impossible to determine which shipments are destined for the Pan American highway. However, under Decentralization, the Import Recommendation form will show this. It will then be possible to determine the quantities of material destined for the Highway. It is suggested that the Oficina de Defensa Económica keep a close check of such shipments during the first few months of the Plan’s operation so that eventually a reasonable tonnage of shipping can be allocated for this project exclusive of regular Costa Rican requirements.

B. Definite instructions regarding Canadian and Empire shipments moving by way of the United States are being prepared and will be forwarded shortly. Meanwhile please refer to Current Export Bulletin No. 80, subject III.

C. Local projects, originating in Costa Rica, will require Import Recommendations. Projects for Costa Rica, originating in the United States and sponsored by this Government, will not require Import Recommendations. You will be informed of all such projects as are approved here in Washington. Requirements for all projects, however, will be included in the monthly target tonnages. A copy of the reply to Airgram A–53, of February 11, from the Legation in Tegucigalpa, on program licenses for the United Fruit Co., Standard Fruit Company, and Rosario Mining Company is enclosed³⁹ for your guidance in handling similar cases in Costa Rica.

D. Five copies of Schedule ‘B’ are being forwarded, as requested.”

39. Instruction No. 1192, March 31, not printed.