GT–25. Letter from the Assistant Secretary of State for Economic Affairs (Mann) to the President of Guatemala (Ydígoras)1
Permit me to express to Your Excellency my sincere thanks for Your Excellency’s letter of December 15, 1959,2 concerning Mr. Arenas’ proposal for increasing Guatemala’s share in the United States sugar market.
[Typeset Page 706]I had the pleasure of speaking in very general terms with Mr. Arenas on this subject some time ago.3 I explained then that the allocation of foreign sugar quotas was made by Act of Congress4 which does not expire until the end of this year. I also explained that in 1960 the Congress would doubtless consider in what form the Sugar Act should be extended and that it would not be profitable to speculate in advance on what the decision of the Congress would be I did observe that on the last two occasions Congress had extended the Sugar Act, small increases were given to the full duty countries and if, as a result of the various economic factors involved, it should develop that small increases in quotas for the full duty countries could be made again, I was confident that Guatemala’s desire for an increased participation in the United States market would be given every consideration. Perhaps this latter statement was taken by Mr. Arenas out of context with the other statements.
No figures were mentioned in these conversations. I am confident Your Excellency will agree that not only is it uncertain that any quota changes will be made in the Sugar Act but that, if made, it is unlikely they will even approach in magnitude the figure which Mr. Arenas has suggested.5 Certainly in the past, changes in United States commercial policy dictated by changing economic factors have been [Facsimile Page 2] gradual and moderate and they have taken into account the desire of the United States Government to promote the economic progress of all of the free world.
The United States shares your concern about the dependence of the economies of Guatemala and a large number of other countries on coffee. It is for this reason that we have supported the efforts of the coffee exporting countries to prevent severe and harmful price fluctuation in the price of coffee and, at the same time, helped to promote a more diversified agricultural and industrial production through such techniques as technical assistance, the expansion of lending facilities and trade and the creation of common markets consistent with GATT principles. I venture to hope that Your Excellency shares my optimism that these cooperative measures will, with the measures taken by other countries, contribute to sustained economic progress throughout the hemisphere.
I have very pleasant memories of my recent residence in Guatemala6 and of the Guatemalan people whom I had the pleasure of meeting. We shall continue to seek better ways to make our own cooperation more [Typeset Page 707] effective and to wish for the happiness and prosperity of the Guatemalan people and their Government, including especially Your Excellency.
In conclusion may I express to your Excellency the assurances of my highest esteem.
Sincerely yours,
- Source: Department of State, Central Files, 814.235/1–2860. No record of the delivery of this letter was found in Department of State files. The source text bears Mann’s typed name.↩
- Ydígoras letter confirmed Arenas’ request for an annual Guatemalan sugar quota of up to 1 million tons for export to the United States. (814.235/12–1559)↩
- For further information, see Document GT–21.↩
- P. L. 545, approved May 29, 1956, amended and extended the Sugar Act of 1948, as amended, to December 31, 1960; for text, see 70 State 217.↩
- On August 2, 1960, the Department of Agriculture announced sugar quota figures for 1960 including an allocation of 6,000 tons reassigned from Cuba to Guatemala under authority of P. L. 86–593, approved July 6, 1960. For text of the law, see 74 State 330.↩
- Mann had served as Counselor of the Embassy in Guatemala 1954–1955.↩