No. 93.
Mr. Hall to
Mr. Bayard.
Guatemala, July 5, 1887. (Received July 28.)
Sir: With reference to your instruction No. 468, of the 13th ultimo, and to other correspondence, relating to the establishment of a line of Spanish steamers between Panama and San Francisco, touching at the ports of Central America, I have now to inform you that the project of a decree is being studied by the Guatemalan cabinet, which is intended to countervail, as far as possible, without violating the contract with Messrs. Irigoyen and March, the discrimination against the established American lines. I have been assured to-day by President Barillas that such a decree will be issued in a few days.
[Page 129]With reference also to my No. 671, of the 24th ultimo, inclosing the project of a contract between the Marquis do Campo and the Guatemalan Government, relative to a line of Spanish steamers between New York, New Orleans, and Aspinwall, touching at the Atlantic ports of Guatemala, I have again been assured that the proposed contract will be rejected.
I will further add that Honduras, Nicaragua, and Costa Rica, in their respective contracts with the same parties, concede rebates of two per centum from the import duties on all merchandise imported by the Panama and San Francisco line. The necessity, therefore, of some legislation which will effectually protect our vessels in the future from such hostile discrimination is apparent.
I have, etc.,