611.1431/121: Telegram

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

38. Minister of Hacienda just gave me an advance copy of Guatemalan counterproposals with reference to trade agreement. Principal features are: tariff concessions [on] unspecified fresh meats, dried powdered milk and cream, unspecified cereals, brandies, cotton seed oil, varnishes, lacquers and enamels, tires and tubes, office furniture, receiving apparatus, motor cars and chassis. Rates of duty on all other items bound as well as the items listed under B of Schedule I. General provisions of agreement also acceptable.

Guatemala requests tariff reductions on wood furniture to 20 per cent ad valorem, honey to 1½ cents per pound, pineapple to 1 cent each, alligator pears to 5 cents pound, dried fruits to 15 per cent ad valorem, dried beans to 1 cent pound, hides to 5 per cent ad valorem, industrial alcohol to 8 cents gallon.

Guatemala requests incorporation following principal compensatory conditions, (1) articles on free list to be maintained, (2) existing duty on Guatemalan exports not to be increased, (3) no restrictive measures re Guatemalan exports, (4) alligator pears may enter United States at any port, (5) any concessions granted other countries to be accorded also to Guatemala, (6) advantages accorded by Guatemala to other Central American States and Panama to be excepted.

Copy and translation of study being forwarded by air mail August 11. Expect to receive formal copy from Ministry for Foreign Affairs next week.

O’Donoghue