611.1431/117

The Chargé in Guatemala (O’Donoghue) to the Secretary of State

No. 707

Sir: Supplementing my telegram No. 34, July 8, 5 p.m., with reference to my visit to the Foreign Office in connection with the reopening of conversations regarding the Trade Agreement, I have the honor to transmit herewith a copy of the Memorandum dated July 8, which I left with the Foreign Minister. After reading the Memorandum, Dr. Skinner Klée expressed optimism as to the eventual [Page 599] outcome of the negotiations along the lines now suggested by the Department and added that he would make immediate arrangements for Consul General Marsh and me to confer with the Minister of Hacienda and the Director General of Customs in the premises. He added however that Guatemala would have to have assurances that no duty would be placed on its exports to the United States which are now on the free list and that no quotas with regard to Guatemalan products would be established during the life of the agreement.

The Foreign Minister in conclusion reiterated the desire of Guatemala to conclude a trade agreement with the United States so as to lend its moral support to the Trade Agreements Program.

Before going to the Foreign Office to present the original of the enclosure, I had discussed the matter thoroughly with Consul General Marsh who was in agreement as to the procedure to be followed. I may add that Mr. Marsh also is inclined to optimism as to the conclusion of a trade agreement, but that neither he nor I expect any great tariff concessions to be granted.

Respectfully yours,

Sidney E. O’Donoghue
[Enclosure]

The American Legation to the Guatemalan Ministry for Foreign Affairs

Memorandum

The Legation of the United States of America has the honor to refer to the Memorandum No. 5191 [5181] of April 29, 1935, from the Ministry for Foreign Affairs of Guatemala, with which was transmitted a copy of a communication, No. 6184 of April 24, 1935, from the Ministry of Hacienda and Public Credit together with the enclosures thereto, these latter being the studies made by the competent authorities in the General Bureaus of Customs and Public Health relative to the proposed Trade Agreement between the United States of America and Guatemala. Reference is also made to conversations on this subject which the American Minister, Mr. Matthew E. Hanna, had the honor of having with His Excellency the Minister for Foreign Affairs.

The Memorandum from the Ministry for Foreign Affairs, above referred to, together with its enclosures, were transmitted by the Legation to the Department of State for consideration and study. As a result thereof the Chargé d’Affaires ad interim has now been instructed to reopen conversations with the Government of Guatemala, [Page 600] it being understood that he will be negotiating on an ad referendum basis, in order to conclude, as expeditiously as possible, a Trade Agreement between the United States of America and Guatemala which should redound to the best interests of both countries and be mutually advantageous.

It would therefore be greatly appreciated by the Legation if the Ministry for Foreign Affairs could find it possible to request the competent authorities of the Government of Guatemala once again to make a study of the question of the Trade Agreement and to inform the Legation, for reference to its Government, if it would be possible to conclude a satisfactory Trade Agreement consisting of the general provisions thereof, the draft of which was transmitted to the Minister for Foreign Affairs with the Legation’s Memorandum of Febuary 26, 1935, together with certain reductions in duty on items of import to be agreed upon as well as with assurances that the existing rates of duty on the more important imports from the United States to Guatemala will not be raised during the life of the agreement.

In transmitting the foregoing to the Ministry for Foreign Affairs the Legation ventures to point out that the far reaching benefits to be derived from the ultimate success of the Trade Agreements Program of the United States, in accomplishing its broader aims with respect to world trade is one which is highly desirable. It is therefore earnestly hoped that the wish of the Government of the United States to conclude a Trade Agreement at an early date with the Government of Guatemala may be realized.