633.113/21
The Secretary of State to the Minister in Uruguay (Lay)
Sir: The Department acknowledges the receipt of your despatch No. 148, of January 9, 1936, with respect to Uruguayan customs discriminations on certain American products, and enclosing a draft of a note on this subject which you propose to address to the Uruguayan Minister of Foreign Affairs.
The Department is of the opinion that your observations should not be confined to the discrimination resulting from the practice of converting that portion of Uruguayan customs duties payable in gold at differential rates according to the origin and nature of the importation, but that you should also discuss the question of the tariff preference given Brazilian pine over American pine lumber reported in your despatch No. 128 of December 6, 1335,9 and the tariff preference accorded imports from Spain of sardines and oil and other products reported in your despatch No. 139 of December 27.9 If you believe that it is desirable to submit your observations in writing in order to insure their careful consideration by the proper Uruguayan authorities, you are authorized to address a note to the Minister of Foreign Affairs along the lines of the draft note herewith enclosed.
You will note that some revision has been made of the draft submitted in your despatch under acknowledgment. The Department deemed it desirable to eliminate the fourth paragraph of your note as it would seem to imply that tariff discrimination was more objectionable than discrimination resulting from exchange control and [Page 944] quantitative restrictions on trade and might therefore be interpreted as conveying some measure of acquiescence in these latter restrictions.
In connection with the tariff preferences accorded Brazilian pine there is transmitted for your information and comment a table prepared by the National Lumber Manufacturers Association, contrasting Uruguayan tariff treatment of lumber from South American countries and from the United States. Your comments as to whether the official valuation of American hardwoods has the same relation to their actual market price as the official valuation of the South American hardwoods has to their local selling price would be appreciated.
Very truly yours,