James A. Williamson to Evarts, June 1, 1877

No. 51. Mr. Williamson to Mr. Evarts.

Sir: I have the honor to inclose you printed copies and translations of two decrees of the Government of Guatemala lately issued. One of them, you will notice, increases the tax upon lands cultivated in sugarcane 50 per cent., and also increases the existing duties 25 per cent. The other decree imposes a forced loan of $500,000.

It is to be regretted * * * that at a time of profound peace the President of Guatemala has deemed it expedient to issue such decrees. The import duties were already so high that they were almost prohibitory—so high were they, in fact, that I have been repeatedly informed by intelligent merchants of this city that the prime cost of most articles is more than doubled before they are able to get their importations out of the custom-house; and that upon some articles the duties are more than 200 per cent. The excessively high tariff of Central America is a serious obstacle to the formation of closer commercial relations between it and the United States. * * *

I am assured that the forced loan imposed by the decree alluded to is not intended to affect foreigners directly or indirectly. Its indirect effect upon those of them engaged in commerce will be sufficiently serious. I shall be agreeably surprised if there is not an attempt made by the government to enforce the decree as to the foreign as well as native residents of the country.

Awaiting your instructions, I have, &c.,