611.2231/240
The Minister in Ecuador (Long) to the Secretary of State
[Received May 27.]
Sirs: In continuation of despatch No. 23 of May 17, 1938, I have the honor to acknowledge receipt of the Department’s telegram No. 26 of the 19th9 asking for an air mail report giving the substance of conversations up to date and to refer to the Legation’s telegram No. 51 of May 20, 10 a.m.,9 advising that the latest details had been covered in air mail despatch No. 12 of May 9,9 No. 16 of May 13 and No. 23 of May 17.
The National Economic Council, as previously reported by the Legation in its despatch No. 946 of November 2, 1937,9 includes among its duties the study of Commercial Treaties and the making of recommendations in connection therewith. Dr. Banda, on May 16th, informally presented to the Council for its consideration the matter of a Trade Agreement with the United States and in response to a request of its members is supplying the information upon which the Council’s study might be based. As all of the members of the Council are not in Quito at the present moment it is understood that necessary data will be forwarded to Señor Luis Alberto Carbo at Guayaquil whose opinion will be requested by mail or telegraph. Dr. Banda suggested, as Mr. McDonough is returning to Guayaquil temporarily (on May 22nd) that it might be well for him to offer to answer any queries that Mr. Carbo might desire to make.
At a conference held on the 20th with Dr. Banda, Mr. Gade and Mr. McDonough being present, the Doctor briefly reviewed the arguments he contemplated offering to the Council in support of a Trade Agreement. He expects to embody these arguments in a note addressed to the Council which will be submitted to the Foreign Minister for his signature, and assuming the Minister will approve the proposed note, hopes to receive the views of the Council prior to the end of next week (May 28th). This hope is based partially on the assumption that Mr. Carbo will communicate his views to the Council—at latest—by the mail leaving Guayaquil on Wednesday morning, May 25th, which should reach Quito on the afternoon of May 26th.
Dr. Banda is making his plans to leave here so as to reach New Orleans where he has been appointed Ecuadorean Consul General by the end of June. This leaves a very short time in which to conclude negotiations.
[Page 518]Despatch No. 16 of May 13th referred to Schedule I. The only additions which have been considered since then have been sewing machines under paragraphs 648 and 649 of the Ecuadorean import tariff: a report will be made when Dr. Banda is prepared to make specific recommendations.
Schedule II—as included with the Department’s instruction No. 244 of July 10th, 193711—appears to be acceptable to Dr. Banda, who promised to explain to the National Economic Council that it would not be practicable to make additions thereto.
Text of Trade Agreement
Doctor Banda prefers a short text instead of the standard general provisions enclosed with the Department’s instruction No. 245 of July 16, 1937.12 However, we hope after a few days, that there will be a change in this respect.
Now that these informal conversations seem to be leading toward something definite the whole matter will again be taken up with the Minister for Foreign Affairs at an early date.
Respectfully yours,