Papers Relating to the Foreign Relations of the United States, For the Year 1887, Transmitted to Congress, With a Message of the President, June 26, 1888

No. 95.
Mr. Hall to Mr. Bayard.

Legation of the United States in Central America,
Guatemala, July 12, 1887. (Received July 28.)

No. 684.]

Sir: With further reference to your instruction No. 468, of the 13th ultimo, and to my dispatches No. 652 and 679, the latter dated the 5th instant, I have the honor to inclose a translation of a note, received today, from the minister for foreign affairs of Guatemala, transmitting a decree signed yesterday, but not yet published, placing American vessels, as nearly as possible, upon the same footing with the vessels of the Spanish line of the Marquis de Campo.

In the ratification of the contract by the Assembly it was made optional with the Executive to reduce the rebate to 3 per cent.; this has been done, and the same rebate will now be conceded to all regular lines touching at Guatemalan ports of the Pacific, except the through steamers between Panama and San Francisco 5 to these a rebate of 29/10 per cent. is conceded. The coasting steamers of the Pacific Mail Company running no farther than some of the ports of Mexico will enjoy the full rebate.

There still remains the above-mentioned discrimination against the through steamers of the Pacific Mail Company, but it is relatively a trilling matter compared with the former.

The present Guatemalan cabinet by this act of justice has shown a disposition to remedy the unfriendly discrimination established by the Assembly at the time of the ratification of the contract.

I have, etc.,

Henry C. Hall.

[Inclosure in No. 684.—Translation.]

Señor Montufar to Mr. Hall.

Department of Foreign Affairs,
Guatemala, July 11, 1887.

Mr. Minister: I have the honor to transcribe to you the decree issued under this date by the President, the contents of which are the following:

“Manuel Lisandro Barillas, President of the Republic of Guatemala:

Considering that it is indispensable that a just equilibrium be established between the several steamship companies which now or may hereafter perform regular service with our ports, to the end that the competition in freight and passages, from which great benefits have been derived, and greater still may hereafter be obtained for the agricultural, commercial, and other interests of the country may be maintained; therefore I decree.

Article 1.

All foreign merchandise imported by the vessels belonging to any company, which vessels shall make regular direct voyages, touching at our ports of the Pacific, shall be entitled to a rebate of 3 per cent. from the present tariff of duties.

Article 2.

A rebate of 29/10 per cent. from the duties on articles imported in vessels of the lines already established, or that may hereafter be established, regularly between Panama and San Francisco, Cal.

Article 3.

In order that a company may enjoy the referred-to concessions, there must be solicited of the minister of public works (fomento), accompanying an itinerary, tariff of freights and passages, with details of conditions, and guarantying the regularity of the voyages in such manner as may be deemed opportune.

Article 4.

The concessions granted by this decree, which in no way modify the concessions previously granted to some steamship companies, shall commence to have effect on the 1st day of September next, 1887.

Given in the National Palace of Guatemala the 11th day of July, 1887.

M. L. Barillas.

The Secretary of State in the Department of Fomento:

Salvador Barutia.”

And in having the honor to make it known to you, it is a pleasure to offer you the assurances of my consideration and esteem.

Lorenzo Montufar.