Memorandum by the Chief of the Division of the American Republics (Duggan)

In response to an inquiry as to whether he had the opportunity of discussing with the British authorities the dispute with Guatemala over British Honduras, Mr. Welles replied that he had taken the matter up with both Lord Halifax and Mr. Cadogan, permanent Under Secretary of the Foreign Office. Neither Lord Halifax nor [Page 436] Mr. Cadogan were familiar with the matter. Mr. Welles informed them of the cause of the dispute and of its present status, and indicated that the exchanges of notes which had taken place thus far did not seem likely to lead to a satisfactory agreement as to the terms of reference. Lord Halifax and Mr. Cadogan said that they would look into the matter at once with a view to issuing appropriate instructions to the British Minister in Guatemala to engage in oral discussions with the Guatemalan Foreign Minister in an endeavor to arrive at satisfactory terms of reference.