Office of the Historian

611.1431/113: Telegram

The Minister in Guatemala (Hanna) to the Secretary of State

Guatemala, June 7, 1935—noon.
[Received 4:15 p.m.]

30. Department’s telegram No. 19, June 6, noon. I think there is a sincere desire here to cooperate with the best of good will but without any material reduction in revenues not directly compensated in some way. The authorities here think there is great disparity between what they consider a trifling advantage to our commerce and a serious reduction in their revenues. The Minister for Foreign Affairs again confirmed the foregoing last week.

A concrete expression by this Government of acceptable tariff concessions, if made at all, probably would be so low that it would [hinder?] rather than help negotiations. I think a combination of the two alternatives you suggest is preferable and that the most satisfactory procedure would be to give the Department’s representatives here broad limits within which to negotiate subject to approval.

We certainly will have to lower our demand. This Government might agree to binding existing rates (instead of lowering them as we have requested in schedule I) on items supplied almost entirely by the United States thereby protecting its revenues without materially impairing the value of the agreement for us. For example, the single item of flour of which we supply over 90 per cent accounts for more than half of the total loss of the customs receipts resulting from our demands and it is not probable that the lower tariff would materially increase consumption.

I believe an agreement can be reached which while it may not give us any considerable immediate benefit will insure us against undesirable changes in tariffs and possibly give us a preferential position during the life of the agreement should the tariffs be raised for other countries. Such an arrangement might have positive advantages.

I believe time will be saved in the end if the Department hold my definite instructions in the matter until after I have arrived at Washington.

The Consul General12 concurs in the foregoing.

Hanna
  1. O. Gaylord Marsh.↩