The Chargé in Honduras (Gibson) to the Secretary of State
[Received July 3.]
Sir: I have the honor to acknowledge the receipt of the Department’s instruction No. 703, June 15, 1935, transmitting Schedule II of the proposed trade agreement with Honduras and to refer to this Mission’s reply in telegram No. 27, June 26, 3  P.M. The list in question was presented to the Foreign Minister and the explanation given that the American Government had made every effort, in compiling Schedule II, to meet the desires of the Honduran Government.
Schedule II was discussed in an informal Cabinet meeting and was accepted by the Honduran Government as forwarded by the Department of State.
It is hoped that Schedule I, as revised, will be forwarded in the near future, with the comments on the revised General Provisions. No difficulty is expected regarding Schedule I, since this list had been discussed by the Honduran Cabinet and approved. However, the Dean of the Faculty of Medicine has recently had several interviews with the Honduran Foreign Minister for the purpose of securing the removal of Note I, to Category C, in Schedule I. The argument is to the effect that the money received from the fees for the [Page 744] analysis of pharmaceutical specialties, or patent medicines, was to be used for the construction of a building for the Faculty of Medicine.
The Honduran Foreign Minister, since the beginning of the conversations, has cooperated to the extreme, and it is felt that the articles in the General Provisions can be agreed upon without extended discussions. As soon as the General Provisions are received, telegraphic information will be forwarded to the Department regarding the paragraphs under discussion, in order that the agreement can be prepared for signature. Telegraphic replies are respectfully requested in order that the Agreement can be completed and so that the possibility of difficulty over the removal of Note I to Category C of Schedule I as proposed by the Dean of the Honduran Faculty of Medicine be thus avoided.
The Honduran Foreign Ministry has facilities for engrossing the Agreement.