The Ambassador in Peru ( White ) to the Secretary of State

No. 2491

Subject: Representations to the Foreign Office as to Tax Discriminations on American Import Merchandise.

Sir: I have the honor to refer to Embassy Airgram No. 38 of January 18, 1945, 2:30 p.m.82 in response to the Department’s Airgram

No. A–27 of January 3 [13]), 1945, and, in connection therewith, to enclose a copy of the formal note dated January 22, 1945,82 sent to the Minister of Foreign Affairs,84 in which violations of Articles II and [Page 1345] VII of the Peruvian-American Reciprocal Trade Agreement are discussed in connection with certain taxes on American import merchandise. As soon as a response is received from the Minister of Foreign Affairs to my request that I be advised what steps the Peruvian Government can take toward adjusting the differences discussed to the provisions of the Trade Agreement, a prompt report will be duly forwarded to the Department.

In making these representations, I considered that inasmuch as informal discussions had failed to achieve useful results, it was desirable to include in a formal communication a complete statement of instances involving violations of the provisions of the Trade Agreement on the ground suggested in the Department’s Airgram No. A–29 of January 17, 194585 that acquiescence in the continuation of minor violations, such as the port taxes at Salaverry and Pisco, might only encourage the continuance of the greater violations. For this reason, mention was made in my note of the additional port charge of $1.00 per 1000 board feet imposed on lumber, a minor instance contrary to the provisions of Article VII, as mentioned in Embassy Report No. 23 of January 18, 1945,85 entitled, “Payment of Port Charges on the Importation of Wheat, Coal and Lumber at Peruvian Ports Other Than Callao”. Inclusion of the discriminatory excise tax on tobacco products was based upon the Department’s Air Mail Instruction No. 3741 of December 15, 1944,85 File 823.61331/10–2344.

As a reassurance to the Department that in other respects American imports receive the benefits to which they are entitled by virtue of Schedule I attached to the Trade Agreement and under the Most-Favored-Nation clause, attention is invited to the special tables presented on pages XXXV–XLI of the Anuario del Comercio Exterior del Peru, 1943, in which the uncollected duties applicable to merchandise entitled to preferential treatment in accordance with Peruvian Trade Agreements with Brazil, Chile (including the Modus Vivendi relating to the Tacna Customshouse), the United States, Great Britain and Colombia are listed. …

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Respectfully yours,

J. C. White
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  3. Manuel C. Gallagher.
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