818.24/501: Telegram
The Chargé in Costa Rica (Trueblood) to the Secretary of State
[Received September 14—12:52 a.m.]
645. Department’s 575, September 9, 6 p.m. The head of the Oficina de Defensa Económica after consultation with the President informs the Embassy that the Costa Rican Government does not wish to accept the proposed modification of the Decentralization Plan at this time considering that it would be harmful to the interests of both countries.
The Oficina is convinced that if materials in free supply were placed under general license it would not be possible to exercise control through shipping permits which would prevent nonessentials from crowding out necessary goods. It points out that if the improvement in the shipping situation is such that despite the large backlog of unshipped orders additional cargo is desired for Costa Rica, this cargo can easily be provided through greater liberality in the issuance of import recommendations.
The Oficina recommends and the Embassy concurs that no change in the existing controls be made at present. Before the end of the year the situation will again be reviewed in the light of the conditions that prevail at that time.