817.24/777: Airgram
The Ambassador in Nicaragua ( Stewart )19 to the Secretary of State
[Received July 6—2 p.m.]
A–277. For Division of Commercial Affairs. Reference Department’s circular airgram June 7, 6:10 PM and circular telegram, June 12, 7:00 PM,20 requesting the Embassy’s advice, comments, and recommendations concerning subject matter contained therein.
The Country Agency21 advises the Embassy that it does not favor a free licensing of materials without Import Recommendations for the following reasons:
- 1.
- Plan A permits a more even, fair and impartial distribution of imported materials among industrials, importers, etc.;
- 2.
- It provides the Board22 a ready available source of information as to who are the importers receiving the various commodities;
- 3.
- 1 and 2 enable the Board to take immediate action in case prices go above the ceiling, or when due to shortages, freezing becomes necessary.
Nevertheless, they approve of this licensing plan when it is necessary to meet unexpected demands for cargo, provided it is confined proportionally to the estimates of shipping tonnage for Nicaragua reported to the Department by the Embassy each month.
The Country Agency has suggested that it will request those importers receiving material without import recommendations to submit to that office a copy of the commercial invoice. In this manner 1, 2 and 3 would be more adequately met. The Country Agency acted immediately in the following manner when notified of the desire to license material in excess of the target tonnage, in order to permit the necessary flexibility to take advantage of all available shipping space. [Page 264] The Import Recommendations on hand and awaiting action were processed less restrictedly, according to the Country Agency. Importers were advised to immediately submit applications to the Country Agency, covering those materials mentioned in Department’s airgram, for consideration. Those importers receiving approved applications will immediately place their orders with their suppliers in the United States by telegraph or otherwise.