Editorial Note

By means of an exchange of notes at Washington on April 4, 1950, the United States waived for a one-year period Article I of the Reciprocal Trade Agreement with Costa Rica, signed at San José on November 28, 1936. (The notes exchanged, not printed, are filed under 411.1831/4–650. For text of the Agreement, see 50 Stat. (pt. 2) 1582, or Department of State Executive Agreement Series (EAS) No. 102. For documentation pertinent to the Agreement’s negotiation, see Foreign Relations, 1936, volume V, pages 373406.)

Purpose of the waiver was to allow Costa Rica to apply to imports from the United States certain recently enacted multiple exchange surcharges. In an aide-mémoire, not printed, which accompanied the United States note, the Department of State said in part that the United States considered the surcharges undesirable and had agreed to the waiver only because Costa Rica had taken the strong position that it could adopt no other method of exchange control under existing circumstances. (411.1831/4–450) Information on negotiations prior to the exchange of notes is in files 411.183, 411.1831, 818.10, and 818.131 for 1950.

On October 18, 1950, at Washington, the United States and Costa Rica exchanged notes which constituted a Settlement Arrangement for Costa Rica’s obligations arising out of aid it had received under the bilateral Lend-Lease Agreement signed at Washington, January 16, 1942. (The notes exchanged, not printed, are filed under 718.56/10–950. Text of the Agreement is printed in Foreign Relations, 1942, volume VI, pages 235238.)

Documents in file 718.56 for 1950 indicate that informal negotiations leading to the Settlement Arrangement began soon after the inauguration of Otilio Ulate Blanco on November 8, 1949. Under the Arrangement, Costa Rica agreed to pay $86,136.81 (an amount determined from a formula set forth in the Agreement of 1942) in three equal annual installments to commence March 1, 1951. Documents in file 718.56 through 1953 show that Costa Rica made all payments on schedule.