Memorandum by Mr. R. Horton Henry of the Division of Commercial Policy and Agreements to the Chief of the Division of the American Republics (Bonsal)

Mr. Bonsal: Reference is made to your memorandum of December 13,77 inquiring as to the status of the trade-agreement negotiations with Paraguay.

A memorandum has just been prepared for the members of the Trade Agreements Committee outlining the substantive objections on the part of the Paraguayans to the revised draft general provisions. In their counterproposal, the Paraguayans wish to omit the requirement of thirty days’ advance notice in the case of administrative rulings effecting advances in rates of duty. A definitive decision on this point will be postponed pending determination as to whether the requirement would involve a modification of the basic customs law of Paraguay or merely entail a change in present administrative practice.

The second point raised by the Paraguayans concerns the impairment and nullification clause of the general provisions. This Division has submitted for the approval of the Trade Agreements Committee an alternative which, it is felt, will meet the objections of the Paraguayans.

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The proposed Schedules I and II will be discussed with the Paraguayan Government in a definitive manner as soon as agreement has been reached on the general provisions.78

  1. Not printed.
  2. In his despatch No. 1494, November 5, 1943, the Ambassador had recommended a new review of the proposed schedules because of the drastic changes in the Paraguayan customs and currency laws. The negotiations did not come to fruition in a trade agreement until September 12, 1946. (611.3431/69)