822.24/665: Telegram
The Ambassador in Ecuador (Scotten) to the Secretary of State
[Received 5:17 p.m.]
763. Reference Department’s circular airgram of August 23, 7 p.m.8 regarding proposed modification of decentralization procedure affecting goods not requiring priority assistance.
Alternative I is the only one which could be adopted in Ecuador owing to existing legislation outlined in the Embassy’s airgram A–336 of June 17, 10:30 a.m.9
The Office of Priorities will insist on participation in screening from requirements standpoint of Import Recommendations for products in free supply and therefore procedure cannot be limited to consignee control (political). The Office of Priorities will unquestionably insist on some control over all types of products with reference to the country’s general economic requirements present and future. These controls were formerly exercised by exchange quotas but exchange is now granted on imports from the United States on basis of approved Import Recommendations. Likewise it is felt that the shipping priority should be determined jointly as in the past by the local agency and the Embassy with a rating indicated on the Import Recommendation, as a safeguard in the event of future changes in the shipping situation.
It is believed that a revised and materially shortened Import Recommendation form could be adopted which would be suitable for use in the case of articles in free supply and for those subject to allocation. The use of two forms is not desirable.
A detailed report is being forwarded by air mail.