611.1231/4–2347
The Secretary of State to the Mexican Ambassador (Espinosa de los Monteros)
Excellency: I have the honor to acknowledge the receipt of your Excellency’ note of April 23, 1947,65 transmitting a memorandum proposing an agreement for the modification of the reciprocal trade agreement between the United States of America and the United Mexican States signed December 23, 1942, under the provisions of Article X thereof, which would terminate in part the concessions accorded under Schedule I of the trade agreement with respect to automobiles, radios, wearing apparel, refrigerators and iron and steel furniture, and wool carpets. The memorandum suggests that Article X, paragraph 2 of the trade agreement be interpreted as authorizing increases in import duties above the rates stipulated in Schedule I annexed to the agreement.
[Page 776]My Government would be particularly unhappy to see any increase in barriers to trade at this time since, as your Excellency is aware, my Government has taken the initiative in a broad program for the expansion of world trade through the lowering of tariffs and other barriers. Even now, at Geneva, Switzerland, the delegations of 18 countries are conducting definitive negotiations for the lowering of such barriers.
In particular, my Government cannot agree that Article X of the trade agreement, even when read in the light of Article XI, can serve as a basis for modification of the provisions of Article VII, which provides that no other or higher duties or charges shall be levied on the importation of United States products listed in Schedule I than these stipulated therein.
My Government recognizes that there is an adverse trend in Mexican balance of payments of the character described in the memorandum under reference. If the Mexican Government is of the opinion that the point has been reached at which curtailment of some imports of secondary essentiality is now desirable as a temporary measure to alleviate the drain on foreign exchange reserves, and if it considers that the curtailment must be extended to certain items listed in Schedule I of the trade agreement, it will no doubt wish to give due notice thereof in writing as provided in the agreement, in order that there may be an opportunity for consultation on any action proposed. On the part of this Government I may say that it appreciates the difficulties confronting the Mexican Government, and is prepared to designate promptly representatives to discuss any measures of relief consistent with the existing trade agreement which may be proposed. I wish to repeat that this Government stands ready to enter into negotiations for a general revision of the trade agreement at the earliest possible moment.
Accept [etc.]
- Not printed.↩