611.2231/174: Telegram
The Minister in Ecuador (Gonzalez) to the Secretary of State
[Received 5:35 p.m.]
34. Department’s telegram No. 23, July 17, 2 p.m. The changes in the tariff rates are for revenue purposes, increasing luxury items and decreasing duties on certain necessities. An examination reveals [Page 496] that the changes affect only a part of the items in Schedule I and are slight as concerns those items. However, the Foreign Office insists that in according consideration to our requests for reductions it will be obliged to do so on the basis of the new rates. On this basis and because of the reductions now made and Ecuadoran commitment it would be possible to obtain rates of 7½ and 25 centavos on flour and lard respectively and lower rate bindings on tires and inner tubes. Naturally on the items increased it will not be feasible to obtain the full reductions contemplated.
I would recommend that we not seek lower rates than 10 and 30 centavos on flour and lard and attempt to trade this difference for increased reductions on other items. I anticipate that Ecuador is not prepared to grant reductions as large as requested on the other items. Please answer by telegraph.