No. 104.
Mr. Hall to Mr. Bayard.

No. 793.]

Sir: With my dispatch No. 684 of the 12th of July, 1887, I transmitted a copy and translation of a decree of the Guatemalan Government, extending the rebate in import duties, so far as the contract with the Marquis de Campo would permit, to all regular lines of vessels.

The Central American Line of the Marquis de Campo has continued to enjoy, up to the present, a rebate of 3 per centum in import duties, and the regular American lines plying between Panama, ports of Central America, and San Francisco a rebate of 2.9 per cent. The withdrawal of the Marquis de Campo’s steamers from these waters is-now announced by his agent in Guatemala, and the Government, in consequence, has issued a decree, on the 24th instant, a copy and translation of which are inclosed, withdrawing all rebates in duties, so that vessels of all nationalities are placed, as formerly, on the same equal footing as regards the payment of customs duties on imports.

The Government of Salvador has already rescinded an executive order to the same effect of the Guatemalan decree of the 11th July, 1887, as I had the honor to report to the Department by my dispatch No. 773 of the 10th ultimo.

I have, etc.

Henry C. Hall.
[Inclosure in No. 793.—Translation.—Extract from “El Guatemalteco “of the 27th March, 1888.—Revocation of the decree of July 11, 1887.]

The representative of the Spanish Central American Line of mail steamers of the Marquis de Campo having manifested that the enterprise has been under the necessity of definitely withdrawing its vessels; considering that the benefits conceded to other companies by the rebate in import duties conformably with the decree of the 11th July, 1887, with the view of establishing a just equilibrium which would not exclude competition and would favor the interests of the country, and in view of the announced declaration of the above-mentioned line, the motive for conceding such privileges having ceased to exist, and the re-establishment of uniformity in import duties having become indispensable, the President decrees to abrogate all the executive orders issued in favor of the steam-ship companies plying regularly to our ports on the Pacific and relating to the rebate in customs duties upon merchandise imported by their vessels.

Let it be communicated.

Signed by the President.
Barrutia,
Secretary of Public Works.