611.1531/80: Telegram

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

25. Department’s telegram 21, June 3rd. Honduran Minister for Foreign Affairs states that no concessions can be made regarding either flour or lard. Am positive that no tariff reduction would be given on flour or lard entering through Amapala, since the Honduran Government is protecting the small farmers making lard along the South Coast and a flour mill is to be built in Comayaguela, twin City of Tegucigalpa, in the near future to supply South Coast. Concession granted March 19th, 1935.

There would be no difficulty in binding the present tariff on wheat of lempira 0.20, and flour mill concessions to import duty free are for longer periods than life of proposed treaty. Special taxes to which wheat is subject were all included in flour mill concessions and could not be changed.

It is my strong recommendation that we recede from any request on flour and lard due to definite opposition of Honduran Government.