611.1431/147: Telegram
The Minister in Guatemala (Hanna) to the Secretary of State
[Received 4:40 p.m.]
66. Supplementing my telegram No. 65, December 6, 3 p.m.21 The situation in general concerning the trade agreement is as follows:
President Ubico would not accept a qualified assurance that we would not impose a tariff on chicle as set forth in the draft note accompanying despatch No. 824, November 16. He then asked for our definite commitment that such a tariff will not be imposed. I then proposed, as a substitute, that we would “continue to cooperate” with this Government in an effort to find a way to put an end to illicit traffic in chicle originating in Guatemala. He accepted this proposal. There will be no reference to chicle in the trade agreement.
The authorities here claim that Guatemala has been losing nearly all its revenue from chicle because of smuggling. This appears to be confirmed by the fact that our import statistics do not show Guatemala as a supplier of chicle since 1927. President Ubico is trying to stop this loss and recently a large shipment of chicle was made from Barrios.
There is the best of good will here concerning the trade agreement and the desire to expedite its conclusion. I have been assured repeatedly that the new customs code and the revised translation of the agreement present no complications.
I hope that the Department can give an assurance in the sense set forth in my telegram in reference. We will be promising nothing new and I have pointed out here that as the record stands now the initiative for our further cooperation in preventing illicit traffic in chicle should be made by this Government.
- Not printed.↩