810.154/2021
The Minister in Honduras (Erwin) to the Secretary of State
[Received May 3.]
Sir: I have the honor to refer to the following communications:
- 1.
- Legation’s despatch No. 2624 of February 12, 1943
- 2.
- Legation’s despatch No. 2631 of February 16, 194313
- 3.
- Department’s instruction No. 1185 of March 26, 194313
- 4.
- Legation’s despatch No. 2835 of March 30, 1943
- 5.
- Department’s instruction No. 1218 of April 16, 194313
There are enclosed herewith copies of a letter of April 9, 1943, from Mr. E. W. James to Mr. W. H. Schwiesow.14
It is noted that instead of proposing a manner of waiving the consular fees of 8% as vigorously demanded by the highway contractors and as reported in the Legation’s despatch No. 2624, Mr. James has merely suggested that the full 8% consular fees be paid.
As explained in the Legation’s No. 2624, it does not appear that the full 8% should be paid in any case. In addition, attention is directed to the fact that even the payment of the three percent would constitute in effect: (1) payment to the London Bond Holders Council of one-third the amount of the fee on all imports for the construction of the Honduran section of the Inter-American Highway by the Honduran Government, and (2) payment to the London Bond Holders Council of two-thirds the amount of the fee on all imports for the construction of the Honduran section of the Inter-American Highway by the United States Government. Assuming, for example, that there will be imported $2,000,000 worth of materials for the Highway, there would be paid to the London Bond Holders Council from the three percent fee, $60,000, of which the United States Government would pay $40,000. This illustration is predicated on the assumption that the amounts collected are needed for the semi-annual payments to the London Bondholders.
It should be noted that the full 8% has until the present been waived by the Honduran Government in response to demands by the Highway contractors direct to the Ministry of Finance and the President. The Legation would appreciate additional instructions at as early a date as possible indicating whether or not the United States Government is willing to make this donation to the Honduran Government.
Respectfully yours,