File No. No. 763.72112/7645

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


In view of mutilations in your March 18, 4 p.m., I have not yet presented the matter to the President. Morever, although he has given me most emphatic oral assurances as to the elimination of German interests he has not done so formally. I feel sure, however, that he will do so if I request it.

Referring to the third paragraph of your cable, I am informed by the special representative of the Pacific Mail that American interests do not dominate transportation at Amapala and that apart from Rosario cargo they have been carrying approximately 25 per cent only of the freight from Amapala to San Lorenzo, and that the result of free competition would probably be that the Government would so hinder the operation of the American charter that it would be impossible for them to compete. It seems to me that from a commercial point of view the selection of the Commercial Export Co. was not ideal. Some days ago Walter Bros., who are British but said to be operating with capital received from Parmelee & Co. of New York, objected to showing invoices to competitors. They may presumably ship by the National Agency and have already asked it to handle one shipment, but it is certainly better to show invoices to American competitors than as formerly to German.

As to the new port, I feel convinced that the Sacate Grande proposition will prove too costly to be remunerative and this opinion is shared by the commanders of the Cincinnati, Yorktown, and Marblehead, as well as by others who have studied the matter.

As the present arrangement does not expire until April 30, I shall take no action until further instructed.

. . . . . . . . . . . . . .