No. 117.
Mr. Hall
to Mr. Bayard.
Legation of
the United States in Central America,
Guatemala, July 21, 1888.
(Received August 9.)
No. 835.]
Sir: By a decree numbered 278, dated the 14th of
June, 1882, the Guatemalan Government declared Livingston, on the Atlantic
coast, a free port, and an adjacent strip of territory, lying between the
Sarstoon River and Santo Tomas, a free zone for a period of ten years from
the 1st of January, 1883. The decree was duly carried out $ Livingston
became a free port in connection with the free zone, and has so continued to
be up to this date, a period of five years and seven months, but now,
without any previous intimation of its intentions, the Government issues
another decree closing the port of Livingston, transferring the custom-house
to Yzabal and abolishing the free zone.
The transfer of the custom-house to Yzabal, where it was formerly may not
cause any serious inconvenience, but the suppression of the free zone is
quite sure to give rise to complaints. Many foreigners,
[Page 160]
among them a number of Americans, have
purchased government lands therein and have engaged extensively in the
growing of tropical fruit for the markets of the United States. Other
foreign interests have also grown up there under the guaranties and
inducements held out by the decree referred to.
I have deemed it my duty to invite the attention of the Guatemalan Government
to these facts; to a consideration of the injuries that those interests are
likely to sustain in consequence of the abolition of the free zone, and to
suggest that its enforcement, at least, shall be postponed until they shall
have been assured against losses.
In this connection T beg leave to invite the Department’s attention to a
similar case which occurred in Costa Rica in 1884 and was reported to the
Department in my No. 241, of the 25th of July, and No. 263, of the 1st of
October of that year; it was also the subject of the Department’s
instructions No. 170 of the 20th of August, No. 184 of the 13th of October,
and No. 192 of the 29th of October, 1884.
For convenient reference, I inclose several papers relating to this case, and
shall be glad to receive the Department’s instructions in regard to it.
I have, etc.,
[Inclosure 1 in No.
835.—Translation.]
Decree No. 278 of the 14th of
June, 1882, declaring Livingston, Guatemala,
a free port for ten years from 1st of January, 1883.
J. Rufino Barrios, general of division and constitutional President of
the Republic of Guatemala, considering that the opening of Livingston as
a free port of deposit will give impulse in a notable manner to the
commercial interests of the country, and will directly and efficiently
stimulate the development of the wealth of the fertile coasts of the
Atlantic, in use of the powers with which I am invested, I decree:.
Article 1.
From the 1st of January next (1883) the port of Livingston shall be free
for importations. On no articles imported thereat, whether for local
consumption or for warehousing, shall any maritime duty be imposed
during the term of ten years.
Article 2.
The Treasury Department shall designate the zone over which the
concessions of the present decree shall be extended, and shall dictate
all the regulations for its execution.
Therefore, let it be published for its promulgation and observance, and
let account thereof be duly given to the legislative assembly.
Given in the palace of the executive power
in Guatemala
the 14th day of June,
1882.
J. Rufino
Barrios.
The secretary of state and of the department of public works:
[Inclosure 2 in No.
835.—Translation.]
department of the treasury and public
credit.
Decree No. 414 of the 6ih of July, 1888, revoking decree
No. 278 of the 14th of June, 1882, which declared Livingston a free port for the period
of ten years from January 1, 1883.
Manuel Lisandro Barillas, general of division and constitutional
President of the Republic of Guatemala, considering:
That by executive order of November 27, 1885, the custom-house
established in
[Page 161]
Yzabal was
transferred to the port of Livingston, and that this measure has not
given the results which were desired;
That it is more desirable for the fiscal interests that the office of
entry and dispatch of merchandise destined for the interior consumption
of the Republic should be at Yzabal;
That by decree No. 278 of June 14, 1882, the opening of Livingston as a
free port and of deposit was ordered in attention to the special
circumstances of that period;
That at present, in view of the importance acquired by the wealth of
those places and the notable development of their agriculture, there is
no longer any motive for continuing to consider the territory comprised
between the Sarstoon and Santo Tom as on the gulf of that name, and San
Felipe, situated on Lake Yzabal, in the Strait of Golfete, as a free
zone;
That the unhealthy climate of Livingston gives rise to difficulties in
the public service, because the employés are continually getting sick
and have to leave the office for indefinite periods, which does not
occur with the same frequency at Yzabal as its climate is less unhealthy
and for the same reason competent employés for the service of the
custom-house can he more readily found; therefore, I decree:
Article 1.
The custom-house at Livingston is suppressed and in substitution the
custom-house of entry is established at Yzabal.
Article 2.
All merchandise heretofore imported through the port of Livingston shall
be entered, indispensably, at the custom-house of Yzabal.
Article 3.
Foreign merchandise destined for consumption in the territory lying
between the Sarstoon River, Santo Tomas, on the gulf of that name, and
SanFelipe, on Lake Yzabal, shall pay the corresponding import
duties.
Article 4.
The removal of the offices of the custom-house at Livingston with its
archives and dependencies, under respective inventory, shall be
undertaken at once.
Given in the palace of the executive power
at Guatemala
the 6th day of July,
1888.
M. L.
Barillas.
The secretary of state in the department of finance and public
credit:
[Inclosure 3 in No. 835.]
Mr. Hall to Señor
Martinez Sobral.
Guatemala, July 17,
1888.
Mr. Minister: By decree No. 278, of the 14th of
June, 1882, the port of Livingston was declared free from all customs’
duties upon importations, whether for consumption or deposit, for the
period of ten years from the 1st of January, 1883. The free zone of
Livingston was made to comprise the territory lying between the Sarstoon
River and Santo Tomas, including San Felipe, on Lake Yzabal.
Under the inducements held out by this decree and its guaranties many
foreigners have taken up and purchased government lands in the free
zone, and have entered largely into the production of tropical fruit for
the markets of the United States, while other associated interests have
been created under the same guaranties, which have still four years and
over to run before the period expressed in the decree shall have
expired.
By decree No. 414, of the 6th, published in the El Guatemalteco of the
10th instant, the above-mentioned decree No. 278 is revoked; the
custom-house at Livingston will be suppressed and the free zone will be
abolished; it is understood also that this measure is to have immediate
effect, no previous notification whatever having been given by the
Government of its intentions.
[Page 162]
The interests created in virtue of the inducements and guaranties set
forth by the first-mentioned decree, No. 278, will, beyond a doubt, be
seriously prejudiced by its revocation; the measure can not fail to call
forth the remonstrances and protests of the injured parties. This
eventuality must certainly have been overlooked at the time the present
decree was issued.
I beg leave to submit this subject, in all its bearings, to the
enlightened criterion and high sense of equity and fair dealing of the
Government of your excellency, fully persuaded that, whatever may be the
motives for the abolition of the free zone, the enforcement, at least,
of decree No. 414 will be postponed until the interests created under
the guaranties of the decree of the 14th of June, 1882, shall have been
assured against the losses and injuries which now threaten them.
Renewing, etc.,
[Inclosure 4 in No.
835.—Translation.]
Señor Martinez
Sobral to Mr. Hall.
Department of Foreign Relations,
Guatemala, July 19,
1888.
Mr. Minister: I have had the honor to receive
the esteemed note of your excellency in which you are pleased to address
to the Government some observations in regard to the difficulties to
which the enforcement of decree No. 414, issued on the 6th instant,
might give rise.
I have also the pleasure to say to you that my Government accepts, with
the interest which is due the observations you make in regard to the
mentioned decree, and will take them into consideration in dictating its
resolution, inasmuch as its desire is that the interests of the
foreigners who come to the country shall be guarantied by the laws.
With sentiments, etc.,
