811.20 Defense(M)/12356: Telegram

The Ambassador in Venezuela (Corrigan) to the Secretary of State

251. Department’s 155, March 4.29 Minister Fomento’s30 reply to Embassy’s communication based on Department’s 35, January 20,29 just received states that Venezuelan Government already has adopted adequate legal measures to control exploitation, trade and exportation of diamonds. Hence Minister considers that preclusive purchase agreement would contribute nothing toward accomplishing desired purpose and might occasion certain difficulties of legal character. He suggests that desired results can be accomplished most effectively if American authorities send competent agents to conduct preclusive buying on the spot in accordance with existing Venezuelan regulations and with or without collaboration of local agents. Finance Ministry [Page 802] will continue restricting issuance required export licenses to United States shipments. Embassy believes this proposal only efficacious method of attaining our purpose. Despatch follows.

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  2. Eugenio Mendoza.
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