The Secretary of State to the Minister in Guatemala ( Hanna )
2. Your despatch No. 866 of January 15. A detailed examination of revised Spanish text reveals that most of the discrepancies with English text are of minor nature. There are several important discrepancies, however, which we wish you to take up at once with the Guatemalan Government.
- The exception proposed to Article 8 is not acceptable. If upon further study the Guatemalan Government finds that its commitments under the match contract are in fact incompatible with the obligation imposed by this article, we would consider eliminating the article rather than accept any exception.
- The paragraph which Guatemala wishes to add to Article IX would restrict the scope of the article which is primarily but not [Page 586] solely concerned with foreign exchange for commercial purposes. The article does not impair Guatemala’s right to take such steps as it may deem necessary to control capital movements. In regard to exchange for non-commercial transactions the article provides only that any control of foreign exchange shall be applied in a nondiscriminatory manner as between nationals of the United States and of any other foreign country.
- Reference penultimate paragraph of your despatch. The Department believes that Guatemala has regulations which, if enforced, would defeat the purposes of Notes 1 and 2. The limiting clause proposed thus might completely nullify these notes.
- A list of unimportant changes which we would like to have permission to make in the Spanish text is being prepared and will be sent you by airmail.
- The Department will engross agreement and transmit to you for signature.