CENTRAL AMERICA ROUNDUP #1 -EL SALVADOR-HONDURAS

Created: 7/5/1968

OCR scan of the original document, errors are possible

oountorpropooiil regarding the prisoner exchange

and

publicly committed to seeking

of the Salvadoran prisoners through the Honduxan judicial system.

Klcaracfua

4. President Somoza appears to have backed away from an earlier stand which wai strainingamong meirbers of the Central American Common Market. Nicaragua had reportedly threatened to break up the Market if the other members did not follow its load and promptlypercent -tariffaa the San Jose Protocol-on imports from outside the area. V

addressuly, Somoza stated that hia country wasisadvantage within the Market but noted that this waa no reason for breaking up themovement. He added that Nicaraguajust and well-balanced integration."

5. Tha surcharge was agreed on early last montheans of dealingising tradein the Common Market. It was not to go Into effect until at least three legislatures hadbut Nicaragua imposed the tariff unilateraly.

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EI Salvador, Costa Rica and Guatemala faoo greater

Internal problems in securing ratification of the protocol, however, and Soraoza's pressure tactics

may have backfired and hardened potential politioal

opposition. The Honduran congress may approve the

protocol today i

Costa Hica

Trajoa and Honduranmay press their Central Americanmeetings today to discuss with Presidentissue of taxation of US-owned banana companies the area. ecent Costa Rican Governmentthat the Central American countriesraise toercent the share of corrtpanies1they can tax. Under present arrangements,governments' share isoroent andercent. At Punta del Este,had asked0 percent local share.

Guatemala

City press is giving heavyto President Johnson's trip but some of it As could be expected, Guatemala's

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