103.9169 Managua: Airgram
The Acting Secretary of State to the Ambassador in Nicaragua (Stewart)
A–197. From Crowley and Dodson,33 FEA, For Dewey.34 Reference Embassy’s Airgram A–162, April 29, 1944, 8:30 a.m.35 Consideration has been given by the Department and the Foreign Economic Administration to the Embassy’s recommendations that announcement of extension to Nicaragua of the decentralization rollback be postponed indefinitely, and that public announcement be made, instead, of the present procedure whereby import recommendations are required for all imports from the United States except flour, and imports valued at $25.00 or less. An import permit issued by the Nicaraguan Government is required in the case of these exceptions to the import recommendations system.
Both the Department and the Foreign Economic Administration consider that the rollback of decentralization and the institution, or reinstitution, of an import permit system by Nicaragua must be treated as separate and distinct subjects. In this connection, it will be recalled that the origin and purposes of the import recommendation system and the Nicaraguan import permit system are entirely different. This difference should not be confused by the fact that the Department and the Foreign Economic Administration acquiesced in the use of the import recommendation form as a control document within the Nicaraguan exchange permit procedures, during the period of complete Decentralization control and under emergency conditions. This acquiescence did not mean that this Government agreed to its permanent or indefinite future use for that purpose.
The decentralization program was an outgrowth of wartime shortages of shipping and goods, and was sponsored by the United States in an effort to give Nicaragua and the other American Republics the means of distributing to the best advantage, and within available shipping, the quantities of goods which this country could furnish. It constituted a method of implementation of the efforts of the United States to assure that the other American Republics would receive an equitable share of the goods which the United States was able to supply. In practice, the decentralization plan and its execution were joint undertakings of the United States and Nicaragua.
[Page 1411]On the other hand, the import permit system which Nicaragua has adopted appears to have its origin essentially in the desire of that country to protect its exchange or balance-of-payments position as imported goods become in relatively free supply. It represents a measure adopted by that country on its own initiative, and for reasons which it apparently considers compelling in its own self-interest.
The Department and the Foreign Economic Administration believe that the non-inclusion of Nicaragua in the rollback, and the continued use of the import recommendation as a control document within the Nicaraguan import procedure, as recommended in Embassy’s airgram, would be tantamount to placing an agency of the American Government in the position of assuming responsibility, directly or indirectly, for the operation of the Nicaraguan import or exchange control measure insofar as imports from the United States are concerned. If such a control measure is considered necessary by the Nicaraguan Government, responsibility for its adoption and, of course, for its execution, rests with that Government.
In view of these fundamental considerations, and the desire of the Department and the Foreign Economic Administration that the rollback be handled in a non-discriminatory fashion, and in as uniform a manner as possible, both the Department and the Foreign Economic Administration feel that the latter must proceed with announcement of the extension of the rollback of decentralization procedure for shipments to Nicaragua. It is planned to make such announcement about June 15th effective July 1st, as per circular airgram of May 2536 going forward to you with this airgram.
You are instructed to inform the appropriate Nicaraguan authorities of the foregoing views of the Department and the Foreign Economic Administration and of the latter’s plans with respect to announcement of extension of the rollback to Nicaragua. You should also bring to the attention of the Nicaraguan Government the views of this Government, as expressed in the final paragraph of airgram A–141 of April 19,37 and in the Department’s circular telegram of February 12, 3 p.m.,38 that it is strongly hoped that the import permit system which the Nicaraguan Government has found it necessary to adopt will be eliminated as promptly as its balance-of-payments situation permits.
Inquiry will doubtless be made by the Nicaraguan authorities as to the attitude of this Government toward the continued use of the Import Recommendation form as a control document within the Nicaragua import control procedure in the case of commodities remaining on the positive list after July 1st. For reasons set forth above, the Department and the Foreign Economic Administration [Page 1412] would much prefer to see the Import Recommendation System and the Nicaraguan Import Permit System entirely separate, recognizing that this would involve the use of two documents (an Import Recommendation Form and Nicaraguan Import Permit Form) in the case of commodities remaining on the positive list, rather than one document as at present.
However, the Department and the Foreign Economic Administration are extremely anxious to proceed with the extension of the rollback to Nicaragua, and if necessary to obtain acceptance of the rollback, will acquiesce in the continued use of the Import Recommendation Form for the two purposes in the case of commodities on the positive list, for such time as these commodities remain on the list. [Crowley and Dodson.]
- Leo T. Crowley, Administrator, and Raymond I. Dodson, of the Foreign Economic Administration.↩
- Ralph V. Dewey, special representative in Nicaragua of the Foreign Economic Administration.↩
- Reference to airgram A–162 apparently in error, as it does not pertain to the subject under discussion.↩
- Not printed, but see footnote 64, p. 744.↩
- Not found in Department files.↩
- Ante, p. 738.↩