611.1531/77: Telegram

The Secretary of State to the Chargé in Honduras (Gibson)

21. Your despatch 1415 of May 17. The Department is gratified with Honduras’ reply regarding Schedule I of the proposed trade agreement, but is disappointed that no concession of any kind has been granted on flour and lard. While aware of the difficulties involved, we believe that no effort should be spared to work out some concession on these major products in a form which the Honduran Government would feel disposed to accept. Since the local production [Page 740]interests involved are centered on the North Coast, we are studying the expediency of requesting tariff reductions on lard and flour entering through the port of Amapala. We are likewise studying the possibility, in the event no concession on flour is obtainable, of binding in the trade agreement the present tariff treatment of wheat, which it is understood is now imported free of duty by the flour mills, and if possible obtaining some concession with respect to certain special taxes to which wheat is now subject. The Department wishes you to cable your views on these suggestions and on any other alternatives that may occur to you.

Hull