621.2231/11–2944
The Secretary of State to
the Chargé in Colombia (Daniels)
[Extracts]
No. 2634
Washington, December 16,
1944.
Sir: I refer to the Embassy’s telegrams nos.
1959 and 1962 of November 2982 and to its despatch no. 4683 of November 2, 1944
regarding the request of the Colombian Government for a waiver of this
Government’s most-favored-nation rights in connection with exclusive
advantages which Colombia might grant to neighboring countries.
I enclose a draft of a memorandum which the Embassy may use in reply to
the memorandum submitted to the Embassy by the Colombian Government, a
copy of which was enclosed with the Embassy’s despatch under reference.
Also enclosed is a draft exchange of notes which the Embassy is
requested to suggest to the appropriate Colombian authorities.81
. . . . . . . . . . . . . .
For the Embassy’s information, the Department has received no request
from the Ecuadoran Government for a waiver of most-favored-nation rights
in connection with this commercial treaty other than a request made in
October 1942, to which no direct reply was made because there seemed at
the time to be little possibility that the treaty would be ratified by
both Governments. However, when the Embassy’s despatch under reference
was received by the Department, an instruction was sent to the American
Embassy at Quito informing it of what had transpired and suggesting that
before bringing up the question of an exchange of notes between Ecuador
and the United States, the Embassy press for a decision regarding a
matter which this Government has had before the Ecuadoran Government for
some time, i.e., the regularization of commercial relations between the
United States and Ecuador on the basis of the trade agreement as
modified by notes exchanged in March 1942.83 It was further suggested [Page 831] that following the discussion of this
subject, casual reference might be made to the treaty developments in
Colombia and to the Ecuadoran request in 1942 for a waiver of our
most-favored-nation rights, pointing out, however, that unless the
Ecuadoran Government were prepared to take some definite action on the
matters discussed, this Government would find it extremely difficult to
agree to action such as the requested waiver, which would further
disrupt the operation of the trade agreement. Our Embassy at Quito was
instructed that if it was successful in obtaining action on the
outstanding trade agreement questions, it could indicate that this
Government would be willing to exchange notes with Ecuador along the
same lines as in the case of Colombia.
The Department has as yet received no reply from the Embassy at Quito. I
shall keep you informed of developments there, but, unless you perceive
objection, it is felt that the exchange of notes with Colombia, need not
be delayed until arrangements are completed for the exchange with the
Ecuadoran Government.
Very truly yours,
For the Secretary of State:
Dean Acheson
[Enclosure]
Draft Memorandum
The memorandum of October 31, 194484 from the Government of Colombia refers to the
contractual formula for tariff preferences to contiguous or
neighboring countries recommended by the Inter-American Financial
and Economic Advisory Committee on September 18, 194185 and cites
various precedents whereby the Government of the United States has,
in accordance with this formula, agreed not to invoke the provisions
of the most-favored-nation clause in its agreements with certain
countries in respect of tariff preferences granted or which might be
granted by these countries to contiguous or neighboring
countries.
In these circumstances the Government of Colombia feels that the
Government of the United States will no doubt express its agreement
not to invoke the provisions of Article VII of the trade agreement
between the two countries signed on September 13, 1935 in order to
claim the benefit of exclusive trade advantages that Colombia might
grant to contiguous or neighboring countries.
While recognizing its adherence to the formula recommended by the
Inter-American Financial and Economic Advisory Committee, the
Government of the United States desires to point out that in its
view [Page 832] the formula was
recommended in 1941 because of the unusual trading conditions
resulting from the war, in which many normal markets were closed,
there were transportation difficulties, and neighboring countries
perforce had to seek trade with each other to a greater extent than
had developed in pre-war years. In agreeing to the recommendation,
the Government of the United States placed great importance on the
three requirements of the formula quoted below.
“That any such tariff preferences, in order to be an instrument
for sound promotion of trade, should be made effective through
trade agreements embodying tariff reductions or exemptions;
“That the parties to such agreements should reserve the right to
reduce or eliminate the customs duties on like imports from
other countries;
“And that any such regional tariff preferences should not be
permitted to stand in the way of any broad program of economic
reconstruction involving the reduction of tariffs and the
scaling down or elimination of tariff and other trade
preferences with a view to the fullest possible development of
international trade on a multilateral unconditional
most-favored-nation basis.”
It is understood that the Treaty of Commerce between Colombia and
Ecuador, signed on July 6, 1942 and amended on October 14, 1943, is
being considered for ratification by the Colombian Congress. In that
event, the Government of the United States will agree, by means of
an exchange of notes, to waiving its most-favored-nation rights in
respect of the exclusive preferences granted to Ecuador by Colombia
in Article V of that treaty.
With regard to any exclusive trade advantages that Colombia might
propose to grant in the future to contiguous or neighboring
countries, the Government of the United States would be glad to give
consideration to such contingencies if they should arise, again
having in mind the three requirements of the formula set forth above
and the circumstances under which it was recommended.