File No. No. 763.72112Aml/81

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


Supplementing my April 30, 12 p.m. I find that owing to the delays and mismanagement of the National Agency the Pacific Mail agent is constantly obtaining more and more of the business which was not given him at first; that the National Agency is allowing its lighters to fall into bad condition so that in a few months it will probably have to retire from business; and that it is losing money rapidly owing to internal confusion and failure to send out bills. Under these circumstances, I wish to withdraw my recommendation in favor of the Government buying the Pacific Mail lighters.

If the Government discontinue [does continue] there is always danger that it will so hinder the operations of its competitors that it will secure much, if not all, the business.

[Page 395]

Anything in the nature of an ultimatum, such as blacklisting the National Agency, should be avoided if another solution can be found …

I shall await your answer to this cable before acting on any further instructions regarding this matter.