Mr. Secretary: With your courteous note number 1308, dated
the 6th of the present month, I was pleased to receive a
copy of the valued communication which was addressed to you
the preceding day by His Excellency the Minister of the
United States of America, containing
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the objections which his Government
raises as to Articles VIII and IX and the two first notes
added to the draft of the Trade Agreement which is about to
be entered into between the two countries.
After studying and considering in detail the objections made
in this request, I have the honor to express to you the
opinion of this Ministry in order that you may please decide
that which you deem most convenient;
The final paragraph of Article VIII, included by the
Government of the Republic m the Spanish text of the draft
of the Agreement, tends to exempt from the provisions of
favored commerce matches, wax matches and automatic lighters
in view of the fact that the laws which govern the monopoly
of said products and the lease contracts entered into with
the “Svenska Tandstiks Aktiebolaget” of Stockholm, Sweden,
approved by decrees of the National Legislative Assembly,
maintain suspended official action insofar as the
organization, administration and management of that industry
is concerned. With that idea in mind and in accordance with
the abovementioned provisions, the Government of the
Republic cannot obligate the monopoly company to give
preference over its own articles manufactured in Sweden to
the same kind of North American articles, especially since
that company has free entry for the importation,
re-exportation and sale of its products.
On the other hand, according to sections 6 and 7 of the
Contract under reference, the Government is obliged not to
manufacture, import, export, re-export, retail or permit
transit through the territory of the Republic of matches,
automatic lighters and similar products which do not belong
to the Company or which are not transported duly protected
by a bill of lading issued by that company.
Under such adverse conditions, imposed by the lack 01
foresight or generosity of prior administrations, the
present Government cannot enter into an agreement with any
country or corporation on favored trade of this kind,
notwithstanding the pleasure with which it would be disposed
to negotiate with the illustrious North American
Government.
The fears expressed that there may exist in Guatemala certain
sanitary laws which, if enforced, in conformity with notes I
and II added to the draft would defeat the purposes in view,
has no basis because in the Republic there are no other laws
on the subject than the law governing the importation,
trade, manufacture and elaboration, storage and use of
medicinal products and narcotic drugs, which has been fully
applied since August 12, 1932, and the Sanitary Code which
has been in force since May 14 of that same year.
Aside from these laws, well known and accepted favorably by
all importers and merchants—including those of the United
States by the warrant stamp printed on their products—there
are no other laws or orders in Guatemala which limit the
entry or sale of drugs and medicines, there being required
of course for the entry of food products a certificate from
the Laboratory of the General Bureau of Customs in which the
good condition and purity of the products is guarantied.
The original purpose of the notes added, as was explained in
this Ministry by the Chargé d’Affaires and Consul of the
United States, was that in Guatemala certificates from
federal agencies would not be demanded as said federal
agencies do not exist in their country, and, in that sense,
this Office made the pertinent clarifications to the
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Ministry for
Foreign Affairs in note number 16295 of October 7, 1935,
stating that the objections of the Bureau of Public
Sanitation had not been interpreted in the right sense given
to them by the distinguished American officials.
This Ministry is of the opinion that, as the above mentioned
additional notes are now drawn up, they comply with the
purpose then set forth by the American Legation and protect
the sanitary interests of the country, the Government of
which, supervising the health and life of the inhabitants,
cannot, without failing in its high and important duties as
the guardian of the physical and moral welfare of the
Guatemalan people, lessen its supreme vigilance in this
sense.
The General Bureau of Public Health has on repeated occasions
exposed that there are current cases of having to refuse
toxic, stale or adulterated products, some of them of North
American manufacture—the Minister understanding clearly that
in all countries of the world there are merchants who pay
more attention to the economic welfare of their companies
than to the interest and health of their consumers. The laws
which are in force in Guatemala on the subject are
universally applied just as in the United States exist
severe restrictions on retail selling which protect the
health of that great nation.
As to the statements as to Article II of the draft and in
view of the explanations of the Minister the Ministry under
my charge believes that it can well agree to the elimination
of the paragraph included in the Spanish text provided that
it be stated in the Agreement and in the final part of
Article IX, that “for non-commercial transactions, the
control of foreign exchange shall be applied in a
nondiscriminatory manner as between citizens of the United
States and nationals of another country” as that
distinguished representative so states literally.
I avail myself of this opportunity to renew to the Minister
the assurances of my highest and most distinguished
consideration.
(s) J. González Campo.
