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SIR: I desire to bring to your attention the fact that the Congress of the United States, at its last session, enacted a law-of which three copies are enclosed herewith-in which provision was made for the admission into the United States, free of duty, of the following articles: All sugars not above No. 16 Dutch standard in color, molasses, coffee, tea, hides, and skins.

In section 3 of this law it is declared that these remissions of duty were made "with a view to secure reciprocal trade with countries producing" those articles; and it is provided that whenever the President shall be satisfied that reciprocal favors are not granted to the products of the United States in the countries referred to, "he shall have the power and it shall be his duty" to impose upon the articles above enumerated, the products of the countries concerned, the rates of duty set forth in section 3.

The Government of the United States being earnestly desirous of maintaining with Guatemala such trade relations as shall be reciprocally equal and mutually advantageous, I

am directed by the President to request you to bring the above-mentioned provisions of this act of Congress to the attention of the minister for foreign affairs of that Republic, and to express the hope that such steps may be taken by his Government as shall result in the establishment of commercial relations between the United States and the Republic referred to on a permanent basis of reciprocity, profitable alike to both. As it is desirable that the negotiations for this purpose should be carried on at Washington, it would be well for your to suggest to the minister for foreign affairs of Guatemala that the Guatemalan representative to this Government be empowered to consider this subject with me.

I am, etc.,

JAMES G. BLAINE.

Mr. Kimberly to the Minister of Foreign Affairs of Guate

mala.

LEGATION OF THE UNITED STATES

IN CENTRAL AMERICA,
Guatemala, January 22, 1891.

MR. MINISTER: It is with pleasure that I inform Your Excellency of a communication from my Government at Washington, dated January 5, announcing that the Congress of the United States has enacted a law in which provision is made for the admission into the United States "free of duty" of articles that Your Excellency's Government is now producing in large quantities, namely: Coffee, sugar, molasses, hides, and skins. Your Excellency must perceive by this friendly act of my Government that it is desirous to meet the exigencies of the future well-being of our kindly relations. For, and inasmuch as, States in our Republic themselves produce

sugar, yet Your Excellency will observe that notwithstanding this fact, in order to meet this contingency and prevent injustice to our producer, it is provided that a bonus be paid him out of the Treasury of the United States, thus clearing the way for reciprocity with Your Excellency's Government; and permit me to quote from my instructions the following language, therein contained:

In section 3 of this law (a copy of which I transmit herewith) it is declared that these remissions of duty were made with a view to secure reciprocal trade with countries producing those articles.

And it is provided that whenever the President shall be satisfied that reciprocal favors are not granted to the products of the United States in the countries referred to, he shall have the power and it shall be his duty to impose upon the articles above enumerated, the products of the countries concerned, the rates of duty set forth in section 3.

I further quote from the same source:

The Government of the United States is earnestly desirous of maintaining with Guatemala such trade relations as shall be reciprocally equal and mutually advantageous.

I hope that Your Excellency's Government may give this important measure the consideration it deserves, and will empower its diplomatic representative at Washington to call upon the Honorable James G. Blaine, Secretary of State, in order to adjust with him this important question, beneficial alike to both Republics.

Accept, etc.,

Señor Don F. ANGUIANO,

SAMUEL KIMBERLY.

Etc., etc., etc.

The Guatemalan Minister to Mr. Blaine.

LEGATION OF GUATEMALA IN THE UNITED STATES,

Washington, December 29, 1891.

Mr. SECRETARY: I have the honor to inform you that the Government of Guatemala, being actuated by an earnest desire to strengthen and draw closer the political and commercial relations between the two Republics, has given careful consideration to the note which was addressed to it by the chargé d'affaires ad interim of the United States at Guatemala city on the 22d of January last, informing my Government of the action taken by the United States Congress on the subject of commercial reciprocity, as contained in section 3 of the tariff law of October 1, 1890.

I am pleased to be able to state, in reply to the said note, that the Government of Guatemala, in due reciprocity for, and in consideration of, the admission into the United States of America, free of all duties, whether national, State, or municipal, of the articles mentioned in the aforesaid note of January 22d last, proposes to admit into all the established ports of entry of the Republic of Guatemala, free of all customs duties and any other national, municipal, or port charges, the articles or merchandise named in the schedule attached to this note, provided that the same be the product or manufacture of the United States. In view, however, of the fact that the Executive of Guatemala is not clothed with authority to put the commercial arrangement herein proposed into operation without the sanction of the National Congress, it is agreed that the President of Guatemala shall submit the arrangement to the National Congress at its session in March next, and that the said arrangement shall be put into operation within thirty days after its approval by that body.

The Government of Guatemala gives the assurance that,

in case the proposed arrangement is carried into effect, no increase shall be made in the export duties now in force on the articles enumerated in section 3 of the said tariff law, nor upon any article, the product of Guatemala, now on the free list of the tariff of said United States, so long as such article shall continue to be admitted free of duty.

The Government of Guatemala reserves the right to adopt the necessary laws and regulations to protect its revenue and prevent fraud in the declarations and proof that the articles enumerated in the attached schedule are exported from, and are the product or manufacture of, the United States; but the laws and regulations to be adopted shall place no undue restrictions upon importers, nor occasion any additional charges or duties on the articles imported.

I feel confident that the proposition, as above set forth, will satisfy the President of the United States that the Government of Guatemala has responded in the fullest manner possible to the legislation of the Congress of the United States, and that it will be accepted as a just and reasonable act of reciprocity. If so, and if the proposed arrangement shall take effect on the terms stated, it will be with the understanding that it shall remain in force until it is modified or abrogated by the legislative action of either Government or by mutual agreement between the Executives of the two countries.

With the highest consideration, etc.,

Hon. JAMES G. BLAINE,

ANTO. BATRES.

Secretary of State.

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