711.162/28: Telegram

The Secretary of State to the Chargé in Salvador ( Engert )

44. Your 76, October 5, 3 p.m.

In exchange of notes between United States and Guatemala, August 14, 1924 (Treaty Series No. 696) according unconditional most-favored-nation treatment in customs matters exception is made of treatment which Guatemala may accord to commerce of Costa Rica, Honduras, Nicaragua or Salvador. A similar exception is made in the exchange of notes by United States and Nicaragua, June 11 and July 11, 1924 (Treaty Series No. 697). Department is willing that such a provision be added at the end of the last paragraph of Article 7 of the Treaty with Salvador exceptions being confined to Costa Rica, Guatemala, Honduras and Nicaragua.
The obligations which would be assumed under Article 7 embrace commercial privileges originating in domestic legislation, executive decree, regulations or otherwise as well as privileges originating in treaties. Department is in doubt as to meaning of the term “concession” as used in your telegram. If the question of the application of the provisions of Article 7 in any special situation has been raised,—(e. g., their bearing upon exceptions or other privileges under concessions of an industrial or business nature to individuals or companies), the Department would desire to be informed [Page 935] in regard to the facts of the situation with your comments before expressing any views.