The Chargé in Guatemala ( O’Donoghue ) to the Secretary of State
[Received February 17.]
Sir: With reference to the Department’s telegram No. 2 of February 4, 12 Noon, in connection with the exceptions taken to certain articles and notes of the proposed Trade Agreement, I have the honor to transmit herewith a copy and translation of a note from the Minister for Foreign Affairs, No. 1581, of February 11, 1936, wherein he transcribed a note dated February 10 from the Minister of Hacienda and Public Credit.
It will be observed that the Government of Guatemala finds itself unable to agree to the exception taken with regard to Article VIII and, in reply to an inquiry upon my part, the Foreign Minister stated that it would be necessary to eliminate the article in question unless the exception proposed is acceptable to the Department.
With regard to Article IX it will be remarked that the Minister agrees to the elimination of the concluding paragraph in the Spanish text provided that it be stated in the Agreement and at the end of Article IX that “For non-commercial transactions the control of foreign exchange shall be applied in a non-discriminatory manner as between citizens of the United States and nationals of another country.”
As to the phrases included in the Notes 1 and 2 of the proposed agreement the Foreign Minister assures me verbally that the Sanitary Regulations now in force throughout the Republic were enacted some years ago and have been applied without discrimination to any and all imports of food and drug products without having received any complaints from local merchants. Consul General Marsh confirms this.