611.2231/439: Telegram
The Secretary of State to the Minister in Ecuador (Long)
36. Your telegram 46, May 9 and despatch 1009, May 10.44 You should inform the Ecuadoran authorities that it is this Government’s understanding that the intention of Article XIII is to permit action by the Government of the country whose currency has appreciated in terms of the other country’s currency, in order if necessary to restrict imports from the latter country, whose exports would tend to be stimulated at least temporarily by currency depreciation; and that, therefore, it is not believed the Ecuadoran Government can appropriately invoke Article XIII as a basis for action in the present circumstances.
You should make it clear, however, that it is not our desire to take advantage of a technicality to prevent the Ecuadoran Government from adopting necessary and appropriate measures to restrict imports within exchange availabilities.
Further instructions will be sent shortly, outlining additional suggestions as to how imports, including schedule products from the United States, may be controlled in a manner conforming to the provisions of the agreement.
- Latter not printed.↩