Mr. de Looper, economist in the Trade and Payments Division, is a graduate of the Rotterdam School of Economics. He was formerly on the staff of the Directorate-General for Foreign Economic Relations, The Hague, and has served in Buenos Aires and Rio de Janeiro as Secretary of the Netherlands Commercial and Financial Mission to Latin America. He is the author of An Appraisal of Trade and Payments Agreements Between Latin America and Europe, a paper submitted to the Conference of the Economic Commission for Latin America at Mexico, D.F., in 1951.
This paper was presented to the Fourth Meeting of Technicians of Central Banks of the American Continent, held in Washington, D.C., May 1954. It was prepared before the changes in the exchange control systems of the United Kingdom and the Federal Republic of Germany, announced late in March 1954.
For an earlier study on Latin American payments relations, see Fernando A. Vera, “A Note on Payments Relations Between Latin American and EPU Countries,” Staff Papers, Vol. I, No. 3 (April 1951), pp. 465-70.
Under a comprehensive trade, payments, and loan agreement, signed on October 30, 1946 between Argentina and Spain, the Argentine Trade Promotion Institute (IAPI) granted Spain a unilateral revolving credit of 350 million pesos. The Peron-Franco protocol of April 9, 1948 subsequently provided that, after this and additional peso credits had been used up, they would be supplemented by the creation of peseta accounts credited in Spain to IAPI.
See footnote 1.
The prohibited list was abolished by Decree No. 513 of February 19, 1964.
El Salvador had signed a somewhat similar free trade treaty with Honduras in 1918.
However, direct transactions frustrated by an unbalanced clearing position or insufficient quotas sometimes were effected on a triangular basis at deviating exchange rates.
A new trade and payments agreement, with the U.S. dollar as the accounting unit, became effective on May 21, 1954.
In terms both of physical supplies and (as a result of transit trade) of price, even when, at the official exchange rates, these goods appear to be overpriced.
Special circumstances, however, may have opposite effects. Under a commercial treaty concluded between Uruguay and Switzerland in 1938, the former undertook to license Swiss imports equivalent to 85 per cent annually of Swiss purchases from Uruguay. In order to facilitate the execution of that commitment, Switzerland in January 1954 made payments to and from Uruguay subject to clearing insofar as deliveries of goods originating in the two countries and the incidental charges thereon are concerned. Because Uruguayan exports were consigned to European ports or were acquired by Swiss importers in transit deals, a substantial proportion of Swiss imports from Uruguay had apparently not been recorded in Uruguayan statistics as exports to Switzerland.