611.2231/487a
The Secretary of State to
the Minister in Ecuador (Long)
No. 663
Washington, September 24, 1941.
Sir: Reference is made to the Department’s
instructions nos. 606 and 623 of August 16 and 27, respectively,12 indicating that a
tentative agreement had been reached with the Ecuadoran Minister of
Finance to terminate, by means of an exchange of notes, certain
provisions of our trade agreement with Ecuador.
There is attached the draft text of a note, in the form for presentation
by you to the Ecuadoran Foreign Minister, providing for (1) termination
of the pertinent provisions of the agreement and (2) most-favored-nation
treatment on a like article basis with regard to exchange control. The
latter provision is designed to replace Article X of the trade
agreement, which is to be eliminated.
The note to be submitted to you by the Ecuadoran Foreign Minister should
be identical, mutatis mutandis, with your note to
him, except for the third paragraph which would read as follows:
“The Government of Ecuador will be pleased to enter into
negotiations with the Government of the United States, at the
earliest practicable date, for the renewal or replacement of the
above-mentioned provisions of the trade agreement of August 6,
1938”.
Before submitting the attached draft for the consideration of the Foreign
Minister, you should assure yourself that the Ecuadoran Government
desires to proceed with the revision of the trade agreement along the
lines worked out in the Department with the Ecuadoran Minister of
Finance. Once you are assured of this you may present the draft to the
Foreign Minister. You should inquire at the same time whether the
executive authority in Ecuador is empowered to bring the provisions of
the notes into force without their having previously been submitted to
the Congress for action.
Please inform the Department if the foregoing procedure and notes are
acceptable to the Ecuadoran Government. Upon receipt of an affirmative
reply, the Department will suggest a future date on which the notes may
be exchanged and the date to be inserted in the second paragraph of the
notes, which date will be such as to allow at least a thirty-day period
to elapse between the day of signature and the effective date.
Meanwhile, the other necessary documents, including the proclamation by
the President, will be prepared here.
Very truly yours,
For the Secretary of State:
Dean
Acheson
[Enclosure]
Draft of Note To Be Presented to the Ecuadoran
Minister for Foreign Affairs (Tobar
Donoso)
Excellency: I have the honor to refer to
recent conversations which have taken place regarding the desire of
the Government of Ecuador, in view of the financial emergency with
which it is confronted, that certain provisions of the trade
agreement between the United States of America and the Republic of
Ecuador signed at Quito on August 6, 1938, as amended by notes
exchanged at Quito on August 6, 1938, September 9, 1938, and
September 13, 1938, be terminated.
I now desire to confirm and make of record by this note the agreement
which, as a result of the conversations referred to, has been
reached between the Government of the United States of America and
the Government of the Republic of Ecuador that the provisions of
Articles I, II, III, IV (except in so far as it relates to the Note
regarding pharmaceutical products following Item 374 of Schedule I
annexed to the Agreement), VI, VII and X of the said Agreement of
August 6, 1938, as amended, and Schedules I (except for the Note
regarding pharmaceutical products following Item 374) and II annexed
thereto, shall cease to have force and effect on and after . . . . .
. . . , 1941.
The Government of the United States has noted with pleasure the
willingness of the Government of Ecuador to enter into negotiations
at the earliest practicable date for the renewal or replacement of
the above-mentioned provisions of the trade agreement of August 6,
1938.
I also desire to confirm that the Government of the United States and
the Government of the Republic of Ecuador are in further agreement,
as follows:
- 1.
- If the Government of either country establishes or
maintains any form of control of the means of international
payment, it shall accord unconditional most-favored-nation
treatment to the commerce of the other country with respect
to all aspects of such control.
- 2.
- The Government establishing or maintaining such control
shall impose no prohibition, restriction or delay on the
transfer of payment for any article the growth, produce or
manufacture of the other country which is not imposed on the
transfer of payment for the like article the growth, produce
or manufacture of any third country. With respect to rates
of exchange and with respect to taxes or charges on exchange
transactions, articles the growth, produce or manufacture of
the other country shall be accorded unconditionally
treatment no less favorable than that accorded to the like
articles the growth, produce or manufacture of any third
country. The foregoing provisions shall also extend to the
application of such control to payments necessary for or
incidental to the importation of articles the
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growth, produce or
manufacture of the other country. In general, the control
shall be administered so as not to influence to the
disadvantage of the other country the competitive
relationships between articles the growth, produce or
manufacture of that country and like articles the growth,
produce or manufacture of third countries.
It is further understood that, notwithstanding any of the provisions
of paragraphs 1 and 2 above, or of the trade agreement of August 6,
1938, as amended, the Government of each country may adopt such
measures as it may deem necessary for the protection of its
essential interests in time of war or other national emergency.
I avail myself of this opportunity to renew to Your Excellency the
assurances of my highest consideration.
