File No. No. 763.72112/9398

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

[Telegram]

Your July 1, 3 p.m.1 The President informs me that he has sent positive instructions, to the National Agency to abstain from all business with parties on the enemy trading list. He also promises the appointment immediately of a new manager and complete separation from the customary course [sic] and absolute equality of treatment to the De Hart agency. He further repeats his assurances that the Government has sequestrated the lighters without paying for them or making any agreement of any kind to pay and that they will have to be returned after the war; and he expressed the opinion that it was not fitting that the Government be engaged in such business under ordinary circumstances. He asked my consent to telegraph to the Minister at Washington to correct his understanding and I made no objection. Regardless of any instructions he may give I feel sure that some favoritism will be shown, but I recommend that the Trading with the Enemy Act not be enforced.

The enforcement of that act would remove a source of pressure which can be used at any time but its enforcement would cause great ill-feeling, and I consider that it is much more important to secure what you recommend in telegram of July 5, 6 p.m.2

I have already protested against the freedom of movement allowed to the Germans, whose leaders held a well-attended meeting at Sabanagrande on the 5th instant, and the President appears to be disposed to issue orders requiring them to obtain permission each time that they desire to move from one place to another. I shall endeavor to secure the issuance of such orders.

Curtis