File No. No. 763.72112/7220

The Chargé in Honduras ( Curtis) to the Secretary of State


Referring to my cable of February 26, 7 p.m., President this afternoon after first submitting counter-proposition reluctantly agreed to the terms stated in your February 23, 7 p.m., but only for a period of two months and with the understanding that I would cable requesting immediately a general license by cable permitting all cargo now at Amapala, Corinto, La Unión, or at sea to be taken from Amapala to San Lorenzo by the National Agency should the consignees so desire. He made it clear that he considered that the assurances of I the Honduranean Government as to absence of any German control or interest in the seized lighters ought not to be questioned and that no arrangement of a permanent character could be made until same were accepted by War Trade Board.

Have instructed steamship company to resume.

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Practically all of the cargo brought by the steamer City of Para is still in Amapala and license for its transportation should be cabled immediately. By special authority from the Honduranean Government some cargo for Rosario has been taken to San Lorenzo in the lighters of the Pacific Mail agent; a small quantity for the Government went in the National Agency lighters, as did some unidentified, and some for Santos Soto & Co.

I cannot recommend too strongly that no special licenses be given for shipments to those on the black list as it is impossible to make people here understand why Americans are permitted to [trade with them] whereas local firms are not.