611.2331/158
Memorandum of Conversation, by Mr. H. Gerald Smith of the Division of Trade Agreements
| Participants: | Señor Juan Chavez, Commercial Counselor, Peruvian Embassy; |
| Señor Pedro Beltrán, Special Commercial Delegate of Peru; | |
| Mr. Hawkins;2 | |
| Mr. Smith. |
Señor Chavez and Señor Beltrán called by appointment to continue the preliminary discussions initiated on November 9 at an introductory meeting with Assistant Secretary Grady for the purpose of exploring the possibilities of establishing a basis upon which negotiations for a trade agreement between the United States and Peru might be undertaken.
[Page 770]The history of preliminary conversations which took place in Lima in 1938 looking to the establishment of a mutually satisfactory basis for trade-agreement negotiations was reviewed by Mr. Hawkins who pointed out that those conversations had not resulted in the establishment of such a basis, principally on account of the apparent reluctance of the Government of Peru to extend to the commerce of the United States tariff concessions granted by Peru to Chile in the trade agreement between those two countries.
Señores Chavez and Beltrán were furnished with copies of the draft general provisions developed by this Government for use in trade agreements and each one of the articles in that draft was reviewed and explained to the Peruvian representatives, who indicated that they did not believe that their Government would have any great difficulty in accepting them in substance, with the exception of the article dealing with most-favored-nation treatment. A considerable discussion followed on the latter point and the previously expressed attitude of this Government was conveyed to Señores Chavez and Beltrán that in a trade agreement with Peru we might be willing to permit certain exceptions to unconditional-most-favored-nation treatment in connection with Peruvian concessions granted to Chile, provided those exceptions did not affect any articles of substantial commercial interest to the United States. There then followed a discussion of the various products on which Peru grants exclusive concessions to Chile. It was pointed out to the Peruvian representatives that of those products the United States would expect in any trade agreement with Peru to receive unconditional-most-favored-nation treatment with respect to the following articles and possibly some others: lumber, fresh fruits, dried fruits, oats, wheat, canned fruits, canned vegetables, canned milk and sewing machines. It was indicated that the products mentioned above, listed in their approximate order of importance to the United States, were entirely distinct from any other products on which the United States might desire to receive concessions in a trade agreement with Peru, and the foregoing minimum list referred only to those items on which exclusive tariff concessions were granted by Peru to Chile.
A general discussion followed as to the establishment of a basis for trade-agreement negotiations and the time at which such negotiations might take place. The Peruvian representatives stated that their instructions from their Government expressly stipulated that none of the concessions extended by Peru exclusively to Chile could be extended to the United States, and they did not feel that they could ask their Government to recede from its position on this question unless they could present some indication of the concessions which might be secured from the United States in a trade agreement. It [Page 771] was emphasized to Señores Chavez and Beltrán that no commitments could be given with respect to any products on which this Government might consider granting concessions in a trade agreement prior to the giving of the usual public notice of intention to negotiate, the receipt of views submitted by interested persons in this country in writing and orally, and full consideration of such views by the trade-agreements organization. It was pointed out by Mr. Hawkins that in as much as the trade-agreements organization was now extremely occupied with pending negotiations with several countries, it was not believed that it would be possible to undertake at this time any detailed consideration of a trade agreement with Peru, but it would be helpful for future use if the Peruvian Government were to study the position of this Government with respect to the exclusive preferences granted by Peru to Chile.
It was agreed that a further conversation would be held on the following day.
- Harry C. Hawkins, Chief of the Division of Trade Agreements.↩