611.1431/111: Telegram
The Secretary of State to the Minister in Guatemala (Hanna)
19. Your telegrams 28, of June 3, 5 p.m., and 29, of June 4, 3 p.m. In the light of your conversations can you recommend a definite course of action to pursue in connection with the proposed trade agreement? The alternatives that suggest themselves to those engaged in the work here are (1) the submission by this Government to Guatemala of a revised and modified Schedule I, (2) asking Guatemala (in view of the negative nature of the reply to Schedule I) to indicate concretely how far it is prepared to go in meeting our desire for some tariff concessions. If you favor the latter alternative please make this suggestion to the Guatemalan authorities.
As regards the “immediate and direct compensating advantages” mentioned in your telegram No. 29, there appears to be nothing more we can offer than the concessions already indicated to you. The indirect and long-time benefits to Guatemala of cooperating with us in the trade agreements program were outlined in instruction No. 198 of May 21. We will, of course, consider sympathetically any practical suggestions Guatemala may wish to make in this connection.
The Department would appreciate cabled advice from you as to the best way in your opinion to break the present impasse and terminate the negotiations successfully and promptly.