611.1431/123
The Chargé in Guatemala (O’Donoghue) to the Secretary of State
No. 729
Guatemala, August 10, 1935.
[Received
August 15.]
Sir: Supplementing my telegram No. 38 of August
8, 12 noon, I have the honor to transmit herewith a copy and translation
of the study or counter proposal made by the Minister of Hacienda and
Public Credit, with reference to the Trade Agreement. It will be noted
that in list No. 314 containing the customs items on which the rates
of duty are to be bound during the life of the Agreement some four
items, 465–1–01–02 and 465–1–04–02, 03 and 04 have been omitted. In
reply to a query concerning this the Foreign Minister stated that “It
would be understood in Washington”.
[Page 603]
In conversation with Dr. Skinner Klée yesterday he told me that when he
formally transmitted Guatemala’s counter proposal to the Legation his
Government most probably would ask one further concession, namely, that
the Government of the United States should agree to demand certificates
of origin on all imports of chicle no matter where coming from. He felt
that this would effectively prevent the smuggling of chicle out of
Guatemala through British Honduras.
Consul General Marsh and I have gone over the proposal submitted by the
Minister of Hacienda and feel that the concessions granted represent a
praiseworthy effort upon the part of the Guatemalan authorities to
conclude a mutually advantageous trade agreement with the United States.
However we believe that Guatemala might be induced to accept a
readjustment or modification of some of the concessions which it is
asking of our Government.
I should add that neither Mr. Marsh nor I have made any comments
concerning the enclosures to any Guatemalan Officials other than to
state that it would afford us pleasure to submit them to the Department
for consideration.
Respectfully yours,
[Enclosure—Translation]
Counterproposal by the Guatemalan Ministry of
Hacienda and Public Credit
Principal Compensatory
Conditions Which the Government of Guatemala Requests of That of
the United States, in Negotiating the Trade Agreement Suggested
by the American Legation
The Government of Guatemala suggests that while the agreement is in
force, the following be observed:
- 1st.
- That the articles which at the present time are free from
customs tariff continue enjoying this freedom and shall not
be taxed by additional imposts or rates of any kind;
- 2nd.
- That the present tariffs applicable to products exported
from Guatemala to the United States shall not be increased,
nor additional imports of any kind be levied on those
products;
- 3rd.
- That no restrictive measures affecting the entry of
Guatemalan products into the United States shall be
prescribed. (See Article VI of the Draft Treaty);
- 4th.
- That the entry of alligator pears produced in Guatemala be
permitted, provided that they be fruits of thick skinned
variety; having the right to enter them through any port of
the United States;
- 5th.
- That any concession, advantage, favor or privilege which
may have been or may be granted hereinafter to another
country by the [Page 604]
United States of America with regard to imports be granted
immediately and unconditionally to Guatemala, excepting the
exceptions expressly stipulated in the agreement. (See
Article X of the Draft Treaty and paragraph four of Article
XIV thereof);
- 6th.
- That concessions, advantages, favors or privileges which
Guatemala extends to the other Republics of Central America
and Panama on import or export transactions and the duties,
rates and imposts which affect these (countries) are
excepted from this agreement. (See paragraph five of Article
XIV of the Draft Treaty); and
- 7th.
- That the tax on the articles set forth in list number 2 be
lowered in the proportion indicated in the column of
“suggested tariff”.
Principal Stipulations of the
Concession Which the Government of Guatemala Grants to That of
the United States in Negotiating the Trade Agreement Suggested
by the American Legation
- 1st.
- Accepts the general provision of the draft, provided that in
the final form, there be taken into consideration the seven
points contained on the sheet attached hereto, on which is set
forth the compensation and exceptions which are requested from
the Government of the United States upon entering into the
agreement;
- 2nd.
- Lowers the tax on articles set forth in list number 1 to the
figures noted in the column of “suggested tariff”; and,
- 3rd.
- Agrees not to modify during the life of the agreement, the
tariffs on the articles enumerated and set forth in list number
3.
