611.1731/16: Telegram
The Secretary of State to the Minister in Nicaragua (Ramer)
16. Your February 6, 3 p.m. While Department does not fully understand statement that “simple statement of adherence to the treaty” will obtain for us equal rights, it assumes that Nicaraguan Government is suggesting the conclusion of a preferential tariff arrangement like that between Nicaragua and France. You may point out that it is not the policy of this Government to enter into such arrangement. This Government’s present policy is one of equality of treatment to all countries which do not discriminate against American commerce. The Tariff Act of 1922 authorizes the imposition of new or additional duties by the President on imports from any country discriminating against the United States, whether by preferences accorded to third countries or otherwise.
You may inform the Nicaraguan Government that the Department is prepared to enter into a modus vivendi through an exchange of notes, mutually according unconditional most-favored-nation treatment. [Page 512] Such arrangement would benefit Nicaragua by assuredly preventing the imposition of penalty duties on its coffee, bananas, gold, silver, hides and cacao, imported free under Tariff Act of 1922, which comprised in 1922 nearly seventy-five per centum of its exports.
This proposal is entirely separate from that of a commercial treaty as suggested in Department’s 44, September 20, 1923, 6 p.m.,20 and replied to in your 64, September 22, 11 a.m.20 Concerning this further instruction will be sent you later.