814.504/7–1547: Telegram
The Secretary of State to the Embassy in Guatemala
205. Urtel 244, July 15.18 Emb Guatemala has now replied19 to Depts memo of May 28 saying Govt has carefully studied articles 105, 116, 121, 238, and 243 and has reached conclusion they do not contain juridical or practical discrimination against American companies.
Reply states that besides American companies referred to in Depths memo the following fincas in Guatemala employ more than 500 agricultural laborers: Hacienda Nacional Chocolá, Finca Nacional “El Porvenir”; Fincas: La Unión, Alabama, El Rosario, Nahuatancillo, La Soledad, San Francisco Cotzal y Anexos.
Finally reply states Govt in capacity of manager of Fincas Nacionales Rústicas e Intervenidas counts larger number of laborers than total employed by all foreign companies and “this does not mean that it is not affected by the dispositions contained in the Labor Code, because if it approved said body of laws, it was with the intention of protecting the laboring class”.
Dept would appreciate your immediate comment on statement concerning fincas which are apparently nongovernment organizations employing more than 500 agricultural laborers. Comment is also desired regarding statement on Govt-managed fincas as well as any other observations which Emb may now care to make on entire Guatemalan reply.20