1474 INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [56 STAT. [Translation] REPUBLIC OF ECUADOR MINISTRY OF FOREIGN AFFAIRS COMMERCIAL OFFICE N O 33-DC-9 QUITO, March 2, 1942. SUBJECT: MODIFICATION OF THE TRADE AGREEMENT BETWEEN ECUADOR AND THE UNITED STATES OF AMERICA. MR. MINISTER: I have the honor to refer to recent conversations which have taken place with regard to the financial emergency with which the Govern- ment of the Republic of Ecuador is today confronted and, in that connection, to certain provisions of the trade agreement between the Republic of Ecuador and the United States of America signed at Quito on August 6, 1938, as amended by notes exchanged at Quito on August 6, 1938, September 9, 1938, and September 13, 1938.[1] In the course of these conversations it has been pointed out that the Government of the Republic of Ecuador finds it necessary, as a fiscal measure designed solely to meet the existing financial emergency, to augment customs revenues, which make up such a large percentage of total revenues, to an extent deemed necessary to safeguard vital inter- ests of the nation. Consideration was given to the possibility of terminating both sched- ules of the trade agreement as a way out of the difficulty; but neither Government desires to adopt this course if it should be possible to avoid it. Therefore, the conversations to which I have referred have dis- closed a mutual understanding which, specifically, is as follows: In view of the existing circumstances, the Government of the United States of America will not invoke the provisions of article I of the trade agreement in respect of the application of the proposed increase in customs duties to articles imported into Ecuador from the United States which are included in schedule I of the agreement. It is understood that such increase will be applied equally to all dutiable imports from all foreign countries and that such increase will not become effective with regard to imports from the United States prior to a period of 30 days from the date of this note. It is under- stood, further, that such increase will be reduced and finally eliminated as soon as Ecuador's fiscal situation improves sufficiently to warrant such a measure. I also desire to take this occasion to confirm the understanding which has been reached between the Government of the Republic of Ecuador and the Government of the United States of America that, notwithstanding the provisions of article X of the trade agree- ment concerning the control of foreign-exchange transactions relating '[Executive Agreement Series 133; 53 Stat. 1951.]
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