File No. 714.1515/46

Minister Ewing to the Secretary of State

[Telegram]

Department’s December 22, 7 p.m. regarding establishment neutral zone. This morning Foreign Minister, on the part of Honduras, accepts proposition withdraw all troops to south and east of Merendén mountains provided Guatemala withdraws all of her troops north and west of the Motagua River, reserving the right to maintain very small police guard for maintenance of order. Plantations Cuyamel Fruit Company realize the concession obligates foreign loan. Further G. states Guatemalan envoy Sanchez Ocaña en route Honduras to treat diplomatically regarding boundary disputes but that Honduras considers herself formally bound to proceed with United States as mediator dispute and cannot treat separately with Guatemala. Foreign Minister will address formal note covering question immediately. Department will be kept informed.

Ewing