611.1431/120

The Chargé in Guatemala ( O’Donoghue ) to the Secretary of State

No. 719

Sir: Supplementing the Legation’s despatch No. 707, of July 9, 1935, concerning the proposed Trade Agreement with Guatemala, I have the honor to report that the Foreign Minister informed me yesterday that while he had not as yet had time, since his return from the Barrios’ celebration at San Lorenzo, to talk with the Minister of Hacienda concerning the agreement he had, nevertheless, been informed that the experts in the Customs House were already engaged in an intensive study to determine what concessions might be granted us and what concessions might be asked of us. This statement would appear to be substantiated by the fact that Consul General Marsh within the past three days has received several requests from the Director General of Customs for information concerning the duties collected in the United States on articles which Guatemala might be in a position to export, even though in small quantities.

The Foreign Minister told me that we could rest assured that Guatemala would conclude a trade agreement with the United States, if only along the broad lines thereof; namely, that Guatemala would guarantee not to increase duties on American products during the life of the agreement and that some small tariff concessions might be made. He stressed the fact that during the Administration of President Ubico Customs tariffs in Guatemala had, in comparison with other countries, been lowered instead of raised, and that, therefore, no great tariff concessions might be expected.

Respectfully yours,

Sidney E. O’Donoghue