T0RJCAL REVIEW PROGRAMFULL
CONJHJnnTIAL -
Ref i DeclarationsTc. TJulllermo Yorlello to the
representatives of tho Guatemalaneeting ln the Hotel Palace
I. Matters discussed ln the press conferencei
note sent by the State Department of theto tho government of Guatemala.
article In the "New York Times" which wasthe memorandun of the State Department.
The Ambassador of Guatemala severely criticised the American representation. Re said (according to the article published by the "Diarlo de Centro Amerlca"-the voice of theThe technical erperts of the Ministry of Foreign Relations will study this memorandum (the notethe State Department) in all those aspects which deal with basic probieas, but willaid Ambassador Toriello categorically- from taking, to an international plane,.Jfce discussion of Decreehich was promulgatedtate organism with complete authotlty of itsegard to the subjective part of the memorandum, in which are contained the thoughts and obsolete ooncepts of agreements between States, the government of Guatemala rejects and protests violently, considering them injurious,and because it Involves diplomatic intervention in favor of foreign companles-whidi in complying with our laws should observe the same". ;
This same article states further that the Ambassador called the note "injurious, written in obsoletehich if employed in the conversation (the one he had onugust with Mr. Moors Cabot) would haveiolent protest. The article in reference also statesi
at*,'. That the chancelry will study and willdiscussion in its legal aspects but willa discussion on the internal actithe
That the note of the Statend other actshreat to the soverAignty.
nd, the answer! will be given within several months.
In the Conversation, the Ambassador (Toriello)an editorial published by ,the "Hew Yorkew attack on Guatemala by "the
It
Of Borth American Information". He said, ia thatJla threatenedtontinuingher of being communist because she has exercisedl^iws which have affected foreigners as well The most serious portion of this articlethreat of reprisals in the coffee market*ompulsion to obey and favor thethe imperialistChronicle of "Ruestrothe#
Ambassador Toriello made an appeal to all the people to funite In defense of national interests and sovereignty".
II. What position ahould be taken in lieu of the declaration of the Ambassador? We think that two situation's should be studledi
are going to be taken in the
measures will not be
If the first lsorceful lansver will be considered the antecedent of State Department inculpation for actions taken which will be felt in the economyuatemala. In this case, it would not be advisable for' the State Department to protest. Its attitude could be limited to declaring that "it awaits an.enswer from the Government together andand including the declarations of Ambassador Toreillo ln the press conference". It should be warned that this economic action should be taken without official declaration, inorm that in no case can the State Department be incriminated and so that an excuse always remains for the scandulous intimations which the coisaunists willnd especially the Guatemalan government.
As the "New York Times" was mentioned for the editorial it published, this newspaper on referring and commenting on the declarations of the Ambassador, can realize the attack on. and say all that ls advantageous to the Department of State, that is, without having the characteristics of.'an official declaration.
The second situationj fcf measures effecting the economy are not considered. In this case, anforceful protest to the attacks on. can be made, since they were made by the representative of the Guatemalan government, in his position as Ambassador.
III. What measuros can be takenf
a. An Immediate descent in maritime transportationrogressiventil therearalysation of ships that reach Guatemalan ports.
iimxcdlate and progressive descent In
of shipments of gas and petroleum.
determination of gas andIn Guatemala.
of the shipment and delay Inof orders for goods of all kinds.equipment naeded for amusements, bought forof the October fair.
measures that should be studledi
Point a* The effects of the descent ln maritime transportation, progressively, until Its paralyzatlon, would be felt not only In the economic but also the social and political orders*
The greatest amount of revenue of immediate disposition for the State are the duties on Imports and exports. This item of revenue would be cut and the government therefore would lack essential funds to cover its budget. The dock workers would be withdrawn until there was no more workeal conflict for the government.
In the wharf of Port Barrios more than two thousand workersn the wharves of San Jose and Champerlco,. The high earnings of the dock workers are the economic life of the ports. Commerce and industry woulderrific impact in its ordinary operationsack of merchandise first, and becauseack of raw materialsauslne many to suspend their laborsonsiderable number ofhich wouldrave conflict for the government. The lack of raw materials In the alcoholic beverage industries would lowereflected In the lowering of duties that the Statehese items heavily taxed.
The same would harpen with the cigarette industry which needs imported tobaccos for its production. The treasury collets an average of Qweekly, for duties from the "Tabacaleraore or less from the factory, "Lalso weekly,tamp tax.
As thoro are no ships the exportation of coffee Is paralized. The crop gathering has begun and the shipment of coffee from trees lesseet in heighth will begin this month, taking greatest proportions during the conths of October, November and December. The harvesting of coffee beans from tall trees begins In January and February -the deliveries beginning in February -fntll. March or April-
If.
The tax on colfee is more0 and the production can0 gold quintales. The impact on this item would be made felt in the month of October and more in the months of November and December. It would effect the govexmment because of the payment of duties, the banks because the greater part of the farmers work with credit Porportioned by the Credito Hlpotecario Nacional, the banks of the State and by particular banks, which will not receive the loanedaralyzing many ordinary operations.
Point b- The companies PAA and TACA transport merchandise to Guatemala and therefore the economic actions to be complete must include air transportation. It would affect commerce, industry, and the workers of these enterprises. The jfeack of transportation of passengers would also create problems and conflicts which, in mapy.
would project themselves into economic disturbances.
P he eanauatien of the supply of gas and petroleum and the impossibility in replacing such supplies wouldrue crisis. These companies operate in/ Guatemala!
The ESSO, which imports gas and crude oil through the port of 8an Jose where it has two large deposits. These are transported in tank ships that are unloaded with special equipment.
The TEXAS, which unloads its gasoline in Puerto Barrioa where it Bos deposits end installations, * v
The CALIFORNIA which unloads its gasoline in Cutueo, Republic of El Salvador and "transports it by rail from the IRCA to Guatemala.
The PEMEX, which carries gasoline from Mexico and transports it by rail to satisfy, in part, the consumption in the western part of the Republic.
The SHELL, whtsb operation is togasoline of other companies except
The petroleum Is used fundamentally by the IRCA, the Electric company and Novella and Cia. The IRCA imports oil directly.
The lack of petroleum would pralyze the railroads and the transportation of Mexican gasoline. The effects would be felt in all the country- the, more or less, would stftp worg and would therebyrave conflict for the government. The people would not have all the articles which are ordinarily bought by this means.
The lack of gasoline would paralyze the transportation
within and outside the cities of all the Republic leaving the people without means of provisions. It would affect industries which use it for Its factories and lt would cause the unemployment of many workers. This wouldrave problem for the government.
The parallEation of transportation would leave the Capital without provisions and wouldistressing situation.
The lack of oil would affect the plants of electrical energy of Amatltlan so that the light and power companies would beffecting the people and many industries. Also, the lack of petroleum would affect farming where It is used for motors that move such equipment aa tractors, etc. These supplies being exhausted, the government would lack fuel for its planes (civil andanks, etc.
Tfte national treasury would be affected because it would not receive the high duties whichevied on gasoline, more thanents per gallon.
Point d- The importance of the determination of supplies -resources- in the country today* would decide the length of time that It would take torisis.
he government would uae other governments to get the articlea of greater importance and if the control is extended to them this recourse would he cut off also. This item has less importance because the government would lack dividends, funds, means of tranaportation,ut the gesture would be advisable before other governments to prevent the measures indicated being frustrated.
Pointther measures less vital may be studied, but which can influence the provocation of an economic colapse which would have so great an effect that the government would not withstand it.
The maritime companies that maintain regular traffic
arei
07CA (La Flota Blanca) Line
Grace Line
They alsohippingacaraguan enterprise. The first operates In the Atlantic (Puerto Barrios) and second and third In the Pacific (Puertos* San Jose, Champerico, and Ocos) end the third ln both oeans.
In order to study the declarations of the Ambassadoro oust be familiar with the note of the Department of State and the importance of this action in order to foams the matter in its particular light, but we can anticipate that, to our knowledge, there ia no injury, nor is lt directed against the sovereignty of the country.
According to the Constitution ofan only report to diplomatic means In case of manifested denial of justice. Accodding to the contracts of the Cla Agricola of Guatemala and the UFhe way to operate ln cases of conflict are established. But, the denial of Justice leaves open diplomatic methods. If one acts within the legal order, accepted by the nation, there cannot be Injury nor wrong to the sovereigntyomplaint and less when that complaint is founded.
It is daid that discussion is not necessary in regard to the Agrarian Law, but whenaw infringes on the constitution and when it is applied to deny Justice to which thereight, it is this denial thatomplaint and comment on the law cannot be stopped.
Through the application of an unconstitutional lav, an act of denial of Justice Is committed. There is reason to comment on this and consider it unlawful. An arbitrary act gives one the right to protest without being accused of intervention or lesion of sovereignty. Tfte complaintiplomatic manner does not constitute intervention. The complaint is limited to the discussion of an act between States, to the exposition of acts which are considered arbitrary and of rights that are considered molested toatisfactory agreement, through understanding, good will, and harmony which should exist in the field of relations between nations. The State before which one should complain ahould respond with the corresponding courtesy and the aceepted international ussages, agreeing or contradicting the facts or rights that base thetrying to convince if it can, the complaining country-but answeringanner as Ambassador Toriello, employing courtesy and other diplomatic tactics shows *hut one does not want to discuss with good will and even Justice the problem planted and wants to ward off the discussion andcandal with purposes well recognized.
Original document.
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