818.6363/258: Airgram
The Secretary of State to the Chargé in Costa Rica ( Reed )
A–474. Legation’s A–625, May 8 and Department’s A–461, May 11. With reference to Madrigal’s statement that the United States would not prevent Costa Rica “from exercising its right to relieve the quota gasoline shortage by obtaining additional supplies which in no way affect pool operations”, you should make it perfectly clear to the Costa Rican authorities that the pooling arrangement is not for the purpose of restricting supplies but is designed to make equitable distribution on the basis of restricted tanker facilities. Consequently, on the one hand the development by a country of additional sources of supply is favored. On the other hand, equitable distribution must be maintained and there must be no discrimination as between participating countries in the application of pool principles. This fact, in conjunction with the restricted tanker situation, makes it imperative that tanker borne supplies to Costa Rica be reduced in an amount equivalent to any imports from Mexico and the badly needed tanker space saved thereby utilized elsewhere. This same course would be followed in the case of any other country in like circumstances.
The Department will maintain its position in this matter.9
- Despatch. No. 347, August 4, from Costa Rica reported information to the effect that the Costa Rican authorities had taken action to stop petroleum importation from Mexico and that the matter would appear to be definitely closed (818.6363/274).↩