Foreign Relations of the United States: Diplomatic Papers, 1944, The American Republics, Volume VII

103.9169/1786d: Airgram

The Secretary of State to the Ambassador in Nicaragua (Stewart)

Washington, January 8, 1944—6 p.m.

A–12. From the standpoint of implied procedure, the Department is concerned over the action of the Nicaraguan Country Agency²⁴ as indicated in your A–512 of December 14, 1943,²⁵ stipulating that, despite the suggested “roll-back” in Decentralization,²⁶ the Nicaraguan Government will require the continuance of Import Recommendations for all commodities imported into Nicaragua.

The Department implies from this action that the Nicaraguan authorities are using the Import Recommendation form as an exchange control permit, justifying its continued use for exchange control reasons. While the Department does not question the authority of the Nicaraguan Government to institute exchange control documentation (providing such procedures are not discriminatory and with due regard to existing conventions) the Department is extremely reluctant to see the Import Recommendation Form, as such, incorporated into exchange control procedures. The Decentralization Plan was presented to the Nicaraguan Government as an emergency measure arising out of supply and shipping restrictions, and the Import Recommendation document, with the extensive information required thereon, was designed to facilitate the licensing and distribution of essential commodities during a period of economic emergency. While an economic emergency still exists, the situation is improving and the need for such extensive controls no longer apply to all commodity groups.

Previous to the existence of the Decentralization Plan, and in past years, the Nicaraguan Government undoubtedly utilized some other documentary form for exchange control purposes. The Embassy will realize that it would be highly preferable to revert to such previous documentary forms for exchange control purposes, rather than to utilize the Import Recommendation Form in that connection. In practical operation there must be of course some coordination between the Import Recommendation Form and the granting of the exchange permit, but our Government considers that the Import Recommendation Form is a document devised for special emergency purposes, and that its existence is not justified when the emergency is ameliorated in part or in whole. The objective of our Government is to relieve foreign commerce from excessive documentation as typified by the Import Recommendation Form as rapidly as conditions permit, but in an orderly and progressive manner as indicated in the “roll-back” of certain commodities already proposed.

The Embassy is requested to inform the Department if the Department’s surmise is correct regarding the intention of the Nicaraguan authorities to incorporate the Import Recommendation Form as a control document within the exchange permit procedures and if the Nicaraguan Government at present requires exchange permits for all imported commodities irrespective of supply conditions in the United States. An immediate reply would be much appreciated.

Hull

24. The office which administered import controls.
25. Not printed.
26. For correspondence and circular instructions on the decentralization of trade controls to individual countries and on the proposals to modify this plan, see pp. 650 ff. and pp. 738 ff.