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Guatemala - President Kjell Laugerud Garcia
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1555811
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Guatemala - President Kjell Laugerud Garcia
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Presidential Correspondence with Foreign Leaders (Ford Administration)
Presidential Correspondence with Foreign Leaders
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The original documents are located in Box 2, folder "Guatemala - President Kjell
Laugerud Garcia" of the National Security Adviser's Presidential Correspondence
with Foreign Leaders Collection at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives
collections. Works prepared by U.S. Government employees as part of their official duties are
in the public domain. The copyrights to materials written by other individuals or organizations
are presumed to remain with them. If you think any of the information displayed in the PDF is
subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library.
1321
NA
THE WHITE HOUSE
WASHINGTON
April 7, 1976
Dear Mr. President:
Secretary Kissinger has delivered to me your letters of
February 24 concerning the work of the US Geological Survey
in Guatemala and the shipping dispute between Delta Steam-
ship Lines and Flota Mercante Gran Centroamericana,
I greatly appreciate your kind words about the quality of the
work done by the Geological Survey. Its preliminary report
was completed on March 10, and a full scientific report is
expected to be ready by the end of April. I directed the
Department of State to ensure that these reports be promptly
delivered to your Government by our Embassy in Guatemala
City. It is my hope that the Geological Survey's work will
prove of assistance in your reconstruction effort.
Concerning the Delta-Flomerca dispute, I have instructed
our officials to examine the issues raised in the memorandum
attached to your letter. Our Embassy in Guatemala will be in
touch with officials of your Government in the near future.
Secretary Kissinger has reported to me the details of his
visit to Guatemala and has described the courageous way in
which your Government and your people are coping with the
effects of the tragic earthquakes. The people of the United
States are pleased and proud to be of assistance in Guatemala's
valiant efforts to rebuild its country after the devastation
caused by the earthquake.
Sincerely, Herald
His Excellency
Kjell Laugerud Garcia
a FORD LIBRAN,
President of the Republic of Guatemala
Guatemala City
Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
NATIONAL SECURITY COUNCIL
G
REFERRAL
Date: April 7, 1976
NSC log # 7601321
MEMORANDUM FOR:
George S. Springsteen
Executive Secretary
Department of State
DOCUMENT DESCRIPTION:
To:
President Laugerud
From: President
Date: Apr 7, 1976
Subject:
Replies to Pres Laugerud's letter
ACTION REQUESTED:
Draft reply for:
President's Signature
White House Staff
Other
Direct reply
Furnish info copy
Dispatch
Translation
XXXX
Recommendations / Comments
Appropriate Handling
Other
Information
DUE DATE:
FORD
COMMENTS:
BERALD LISHANY
CLASSIFICATION:
1321 & 1369
MEMORANDUM
THE PRESIDENT HAS SEEN
THE WHITE HOUSE
WASHINGTON
84/6/16
April 5, 1976
MEMORANDUM FOR THE PRESIDENT
FROM:
BRENT SCOWCROFT
SUBJECT: Reply to Letters from Guatemalan President Laugerud
During Secretary Kissinger's trip to Guatemala, President Laugerud
gave him two letters for you (Tab B). The first requests reports
from the US Geological Survey on its seismic studies in Guatemala.
The preliminary geological report has been issued and was delivered
to President Laugerud by our Ambassador on March 22. The final
report is expected to be completed by the end of April and also will
be forwarded promptly to the Guatemalan Government.
The second letter concerns a long-standing shipping dispute between
Delta Steamship Lines of New Orleans and a Guatemalan flag line.
Last year Delta filed a complaint with the Federal Maritime
Commission and the Special Trade Representative, who have since
found that Guatemalan shipping practices discriminate against US
carriers. A February deadline given the Guatemalan Government
to make modifications in its discriminatory legislation has been
extended temporarily because of disruptions caused by the major
earthquake in Guatemala. The Guatemalan Government has main-
tained that its shipping legislation is no more discriminatory than
that of many other nations, including that of the United States.
Unless progress is made soon in settling the dispute, Guatemala
could be subject to the imposition of countervailing duties by the
United States.
Attached for your signature at Tab A is a suggested reply to
President Laugerud's letters. The reply informs him that you
have directed that the Geological Survey reports be promptly
delivered to his Government by our Embassy. It also notes that
you have instructed our officials to examine the issues which are
2
raised in the memorandum forwarded by President Laugerud's
letter relating to the shipping dispute and that they will be discus-
sing the problem with his Government in the near future. I do not
believe it desirable for you to become involved in the specifics of
the dispute at this stage.
The suggested reply has been coordinated with Doug Smith of
Robert Hartmann's office and with the office of the Special Trade
Representative.
Attachments
NATIONAL SECURITY COUNCIL Ze'll
March 30, 1976
ID
To:
Art House
From:
Mary Brownell MEB
The first page of the letter and the
memo to the President have been
modified slightly to accommodate
STR's comments. I am attaching
the earlier versions so you can see
the changes that have been made.
STR's concurrence has been noted
on both memos.
Bud- Changer marked in Art pencil.
Tab J Furlto
1321/1369
4.5 1015
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
world
Rezypez
1E
MEMORANDUM FOR THE PRESIDENT
FROM:
BRENT SCOWCROFT
SUBJECT: Reply to Letters from Guatemalan President Laugerud
During the Secretary trip to Guatemala, President Laugerud gave
him two letters for you (Tab B). The first requests reports from
the US Geological Survey on its seismic studies in Guatemala. The
preliminary geological report has been issued and was delivered to
President Laugerud by our Ambassador on March 22. The final
report is expected to be completed by the end of April and also will
be forwarded promptly to the Guatemalan Government.
The second letter concerns a long-standing shipping dispute between
Delta Steamship Lines of New Orleans and a Guatemalan flag line.
Last year Delta filed a complaint with the Federal Maritime
Commission and the Special Trade Representative, who have since
found that Guatemalan shipping practices discriminate against US
carriers. A February deadline given the Guatemalan Government
to make modifications in its discriminatory legislation has been
extended temporarily because of disruptions caused by the major
earthquake in Guatemala. The Guatemalan Government has main-
tained that its shipping legislation is no more discriminatory than
that of many other nations, including that of the United States.
Unless progress is made soon in settling the dispute, Guatemala
could be subject to the imposition of countervailing duties by the
United States.
Attached for your signature at Tab A is a suggested reply to
President Laugerud's letters. The reply informs him that you
have directed that the Geological Survey reports be promptly
delivered to his Government by our Embassy. It also notes that
you have instructed the Department of State to examine the issues
omaginal
2
which are raised in the memorandum forwarded by President
Laugerud's letter relating to the shipping dispute and that our they
officials will be discussing the problem with his Government in
the near future. I do not believe it desirable for you to become
involved in the specifics of the dispute at this stage.
The suggested reply has been coordinated with Doug Smith of
Robert Hartmann's office and the 09+
Attachments
FOUD
?
DERALD
THE WHITE HOUSE
WASHINGTON
Dear Mr. President:
Secretary Kissinger has delivered to me your letters of
February 24 concerning the work of the US Geological
Survey in Guatemala and the shipping dispute between
Delta Steamship\Lines and Flota Mercante Gran Centro-
americana.
I greatly appreciate your kind words about the quality of
the work done by the Geological Survey. Its preliminary
report was completed on March 10, and a full scientific
report is expected to be ready by the end of April.
I directed the Department of State to ensure that these
reports are promptly delivered to your Government by
our Embassy in Guatemala City. It is my hope that the
Geological Survey's work will prove of assistance in your
reconstruction effort.
Concerning the Delta-Flomerca dispute, I have instructed
four officials
the Department of State to examine the issues raised in
the /memorandum attached to your letter. The Department,
through our Embassy in Guatemalay will be in touch with
officials of your Government in the near future.
Secretary Kissinger has reported to me the details of his
visit to Guatemala and has describedithe courageous way
in which your Government and your people are coping with
the effects of the tragic earthquakes. The people of the
1321/1369
Dear Mr. President:
Secretary Kissinger has delivered to me your letters of
February 24 concerning the work of the US Geological Survey
in Gustemala and the shipping dispute between Delta Steam-
ship Lines and Flota Mercante Gran Centroamericana.
I greatly appreciate your kind words about the quality of the
work done by the Geological Survey. Its preliminary report
was completed on March 10, and a full scientific report is
expected to be ready by the end of April. I directed the
Department of State to ensure that these reports be promptly
delivered to your Government by our Embassy in Guatemala
City. It is my hope that the Geological Survey's work will
prove of assistance in your reconstruction effort.
Concerning the Delta-Flomerca dispute, I have instructed
our officials to examine the issues raised in the memorandum
attached to your letter. Our Embassy in Gustemala will be in
touch with officials of your Government in the near future.
Secretary Kissinger has reported to me the details of his
visit to Gustemala and has described the courageous way in
which your Government and your people are coping with the
effects of the tragic earthquakes. The people of the United
States are pleased and proud to be of assistance in Guatemala's
valiant efforts to rebuild its country after the devastation
caused by the earthquake.
Sincerely,
His Excellency
Kjell Laugerud Garcia
FORD
President of the Republic of Guatemala
A
Guatemala City
LIBRAR
Revised:BS:AH:nm:3/30/76
132171369
I
1+1
THE WHITE HOUSE
WASHINGTON
March 27, 1976
Arthur House
Can we put STR (Dent) down as concurring
in the letter?
Bud
MH
1321 & 1369
AH
MEMORANDUM
NATIONAL SECURITY COUNCIL
March 26, 1976
MEMORANDUM FOR:
BRENT SCOWCROFT
FROM:
MARY BROWNELL MEB
SUBJECT:
Reply to Letters from Guatemalan
President Laugerud
When the Secretary visited Guatemala, President Laugerud gave him
two letters to deliver to the President--one concerning his Government's
desire to have the reports from the US Geological Survey work in
Guatemala and the other concerning a shipping dispute. Attached for
your signature at Tab I is a memorandum for the President forwarding
a suggested response to the two letters. The reply has been coordinated
with Doug Smith and with STR.
Attachments
Concurrence:
Robert Hormats
TRANSMITTED BY:
ADDRESS DL.
IJ
(Date & Time Stamp)
(Date & Time Stamp)
DEPARTMENT OF STATE
Operations Center
M 13'76 1513'76
LDX MESSAGE RECEIPT
S/S #
'76 MAR 10 PM 3:29 29
LDX MESSAGE NO.
1976 CLASSIFICATION
UNCLASSIFIED
DRAFT LETTER
;
NATION ROOM NO. PAGES @2 @
DESCRIPTION OF MSG.
FROM: MJPlatt
ARA/CEN
20883
5909 NS
,
,
,
Officer
Office Symbol
Extension
Room Number
LDX TO:
DELIVER TO:
EXTENSION:
ROOM NUMBER:
White House
,
,
NSC
Mr. Stephen Low
395-5004
,
a
,
,
9
,
D
FOR:
CLEARANCE
INFORMATION
/
PER REQUEST
/
COMMENT
/
REMARKS:
VALIDATED FOR TRANSMISSION BY: Executive Secretariat Officer
MAR
/
type to Doug la draft Smith and (with stat both nd tag
2
I will incoment give letter). you memos to Pres
FORD
GERALD LIBRARY ?
DRAFT REPLY FROM PRESIDENT FORD TO PRESIDENT LAUGERUD
Dear Mr. President:
blucadite
Secretary Kissinger has Iven me your two letters of
February 24 concerning the work of the U.S. Geological
Survey in Guatemala and the shipping dispute between Delta
Steamship Lines and Flota Mercante Gran Centroamericana.
I greatly appreciate your kind words about the quality
of the work done by the Geological Survey. Their preliminary
report was completed today, on March 10, and full scientific
report is expected to be ready by the end of April. I have
directed the Department of State to ensure that these reports
are promptly delivered directly to your Government by our Embassy in
It is my hope that
prove
Guatemala City. I hope the Geological Survey's work will be
of assistance in The reconstruction effort.
I
Concerning the Delta-Flomerca dispute, I have instructed
the Department of State to examine the issues raised in the
memorandum attached to your letter. The Department, through
our Embassy in Guatemala, will be in touch with officials of
your government in the near future.
his visit in Guatemala
Secretary Kissinger has described to me the suffering
caused by the tragic earthquake of February 4. He has also] also
and
^
told me of the courageous way in which your Government and
the effects of the tragic earthgrakes,
your people are coping with with this great unp unprecedented tragedy. The
the assisted being given
people of the United States take pride in being able to
accission Guatemala Sn hour of need.
valient effects to To neb of its cats after the
Crastation caused 4 The instructions Sincerely
yours,
Gerald R. Ford
His Excellency
General Kjell Laugerud Garcia,
President of the Republic of Guatemala,
Guatemala City.
propert
Drafted:ARA/CEN: MJPlatt :3/10/76:X20883
Cleared : ARA/CEN : LKilday mon
ARA: HARyan mp
EB : JSteinmetz mp
DRAFT REPLY FROM PRESIDENT FORD TO PRESIDENT LAUGERUD
Dear Mr. President:
Secretary Kissinger has given me your letter of
February 24 requesting a report by the U.S. Geological
Survey on the results of their seismic studies in
Guatemala. We shall of course be happy to comply with
your request.
A preliminary report will be ready on March 10, and
the full scientific report is expected to be completed
by the end of April. I am directing the Department of
State to ensure that these reports are delivered directly
to your Government by our Embassy in Guatemala City.
Secretary Kissinger has described to me the suffering
caused by the tragic earthquake of February 4. He has
also told me of the courageous way in which your Government
and your people are coping with this unprecedented tragedy.
The people of the United States take pride in being able
to assist in Guatemala's hour of need.
Sincerely yours,
Gerald R. Ford
His Excellency
General Kjell Laugerud Garcia,
President of the Republic of Guatemala,
Guatemala City.
7604018
1369
DEPARTMENT OF STATE
im
Washington, D.C. 20520
March 8, 1976
MEMORANDUM FOR MR. BRENT SCOWCROFT
THE WHITE HOUSE
Subject: Letter from Guatemalan President
Concerning Shipping Dispute
While Secretary Kissinger was in Guatemala
on February 24, he was given the attached letter
from GOG President Laugerud for President Ford.
The letter concerns a long-standing shipping
dispute between Delta Steamship Lines of New
Orleans and a Guatemalan flag line. On July 15,
1975 Delta filed a complaint with the Federal
Maritime Commission and the Special Trade
Representative. Both STR and FMC have formally
considered the issue and have found that Guatemalan
shipping practices discriminate against U.S.
carriers. The GOG was given until February 14 to
reform its discriminatory legislation, or face the
imposition of countervailing duties. Because of
the earthquake, this deadline is being extended
on a month-by-month basis until the GOG is able
to deal with the problem.
The GOG maintains that its shipping legislation
is no more discriminatory than that of many other
nations, including the United States. FMC and STR,
in issuing their formal finding of discrimination,
rejected the GOG's arguments. The Department
proposes that President Ford acknowledge receipt
of President Laugerud's letter but avoid discussing
the specifics of the case. At an appropriate time,
the Department will follow up with a re-statement
of the already decided USG position to the interested
officials of the GOG.
A draft reply of a letter for President
Ford's signature is attached at Tab 1. A cable
with the text of the letter is attached at Tab
2 and will be sent to Guatemala upon approval of
the text.
George P. S. mans Springsteen
Executive Secretary
Attachments:
1 - Draft letter from President Ford
2 - Draft cable with text of suggested reply
3 - Laugerud letter to President Ford
DRAFT REPLY FROM PRESIDENT FORD TO PRESIDENT LAUGERUD
Dear Mr. President:
Secretary Kissinger has given me your letter of
February 24 concerning the shipping dispute between
Delta Steamship Lines of New Orleans and Flota Mercante
Gran Centroamericana of Guatemala.
I thank you for bringing this matter to my
attention. I have instructed the Department of
State to examine the issues raised in the memorandum
attached to your letter. The Department, through
our Embassy in Guatemala City, will be in touch
with officials of your Government in the near
future.
In closing, may I again express the sympathy of
the people of the United States for the suffering
caused by the tragic earthquake of February 4.
Sincerely yours,
Gerald R. Ford
His Excellency
General Kjell Laugerud Garcia,
President of the Republic of Guatemala,
Guatemala City.
10
UNCLASSIFIED
ARA/CEN: MJPLATT
3/L/76, X20883
ARA: HARYAN
USGS HFLEMING {PHONE}
ARA/CEN MWEISSMAN
S/S:
IMMEDIATE
GUATEMALA
FOR THE AMBASSADOR FROM HEWSON RYAN
HAR
E.O. 11652, N/A
MJP mp
TAGS: TGEN, GT
HF no
MW mgo
SUBJECT: LETTER FROM PRESIDENT FORD TO PRESIDENT LAUGERUD
RE U.S. GEOLOGICAL SURVEY REPORT ON GUATEMALA
S/S
PLEASE TRANSMIT THE FOLLOWING LETTER TO PRESIDENT LAUGERUD
FROM PRESIDENT FORD:
QUOTE.
DEAR MR. PRESIDENT:
SECRETARY KISSINGER HAS GIVEN ME YOUR LETTER OF FEBRUARY 24
REQUESTING A REPORT BY THE U.S. GEOLOGICAL SURVEY ON THE
RESULTS OF THEIR SEISMIC STUDIES IN GUATEMALA. WE SHALL
OF COURSE BE HAPPY TO COMPLY WITH YOUR REQUEST.
A PRELIMINARY REPORT WILL BE READY ON MARCH 10, AND THE
FULL SCIENTIFIC REPORT IS EXPECTED TO BE COMPLETED BY THE
END OF APRIL. I AM DIRECTING THE DEPARTMENT OF STATE TO
ENSURE THAT THESE REPORTS ARE DELIVERED DIRECTLY TO YOUR
GOVERNMENT BY OUR EMBASSY IN GUATEMALA CITY.
SECRETARY KISSINGER HAS DESCRIBED TO ME THE SUFFERING
CAUSED BY THE TRAGIC EARTHQUAKE OF FEBRUARY 4. HE HAS
ALSO TOLD ME OF THE COURAGEOUS WAY IN WHICH YOUR
UNCLASSIFIED
FORM DS 322A{0CR}
UNCLASSIFIED
I 2
GOVERNMENT AND YOUR PEOPLE ARE COPING WITH THIS UN-
PRECEDENTED TRAGEDY. THE PEOPLE OF THE UNITED STATES
TAKE PRIDE IN BEING ABLE TO ASSIST IN GUATEMALA'S HOUR
OF NEED.
SINCERELY YOURS,
GERALD R. FORD.
UNQUOTE.
TEXT OF LAUGERUD LETTER BEING SENT BY APO. YY
UNCLASSIFIED
UNCLASSIFIED
ARA/CEN:MJPLATT
3/2/76, X20883
ARA:HARYAN
EB/TT/MA: JSTEINMETZ {PHONE}
ARA/CEN MWEISSMAN
IMMEDIATE
GUATEMALA
FOR THE AMBASSADOR FROM HEWSON RYAN
HAR
E.O. 116521 N/A
MJP
TAGS: EWWT, GT
JS
MW
SUBJECT:
DELTA/FLOMERCA DISPUTE
PLEASE TRANSMIT THE FOLLOWING LETTER FROM PRESIDENT
FORD TO PRESIDENT LAUGERUD:
QUOTE.
DEAR MR. PRESIDENT:
SECRETARY KISSINGER HAS GIVEN ME YOUR LETTER OF FEBRUARY 24
CONCERNING THE SHIPPING DISPUTE BETWEEN DELTA STEAMSHIP
LINES OF NEW ORLEANS AND FLOTA MERCANTE GRAN CENTRO-
AMERICANA OF GUATEMALA.
I THANK YOU FOR BRINGING THIS MATTER TO MY ATTENTION.
I HAVE INSTRUCTED THE DEPARTMENT OF STATE TO EXAMINE
THE ISSUES RAISED IN THE MEMORANDUM ATTACHED TO YOUR
LETTER. THE DEPARTMENT, THROUGH OUR EMBASSY IN GUATEMALA
CITY, WILL BE IN TOUCH WITH OFFICIALS OF YOUR GOVERNMENT
IN THE NEAR FUTURE.
IN CLOSING MAY I AGAIN EXPRESS THE SYMPATHY OF THE
PEOPLE OF THE UNITED STATES FOR THE SUFFERING CAUSED
UNCLASSIFIED
FORM DS 322A{0CR}
UNCLASSIFIED
I 2
BY THE TRAGIC EARTHQUAKE OF FEBRUARY 4.
SINCERELY YOURS,
GERALD R. FORD.
UNQUOTE.
TEXT OF LAUGERUD LETTER TO FORD BEING SENT BY POUCH.
ORIGINAL OF PRESIDENT FORD'S LETTER WILL BE SENT BY
POUCH WHEN SIGNED. YY
UNCLASSIFIED
132,
S/S 7604019
DEPARTMENT OF STATE
1R
Washington, D.C. 20520
March 5, 1976
MEMORANDUM FOR MR. BRENT SCOWCROFT
THE WHITE HOUSE
Subject: Letter from Guatemalan President Laugerud
While Secretary Kissinger was in Guatemala on
February 24, GOG President Laugerud handed to him
the attached letter addressed to President Ford.
The letter requests reports from the U.S. Geological
Survey on their seismic studies in Guatemala. As stated
in the draft reply, a preliminary report will be ready
by March 10, with the full "scientific" report expected
to be completed by the end of April. The USGS will
deliver the reports to the Department for forwarding
to our Embassy and delivery to the Government of
Guatemala.
Attached is a draft response, by cable and by
letter, for the President's signature.
C. Arth_Brug
George S. Springsteen
Executive Secretary
Attachments:
1 - Draft letter from President Ford
2 - Cable response from President Ford
3 - Letter from President Laugerud
EL PRESIDENTE
15
1821
Guatemala, February 24th., 1976.-
DE LA
REPÚBLICA DE GUATEMALA
AMÉRICA CENTRAL
Your Excellency:
I would like to acknowledge the contribution given to our nation by
the Scientific Mission sent by your Government. We have learned a great deal
from this disaster, and have found a great comfort in the fact that all our neigh-
bouring countries responded to our help inmediately.
It is imperative for our Government to learn about the result that
your Scientific Mission will obtain. Members of the U.S. Geological Survey
gave us support and unofficial advise in many aspects: Intensity, Damage, Seismicity
and Fault Mapping studies.
Our Government will be most appreciative to obtain copies of the
results of your scientific team. The studies so performed will help in the delinia-
tion of Seismic Hazards areas in Guatemala and in Guatemala City, which will be a
great service to our striken nation. The officially requested results will be used in
the program of reconstruction at the infrastructure level, as well as in the capital city
of Guatemala.
-- 2 --
EL PRESIDENTE
DE LA
REPÚBLICA DE GUATEMALA
AMÉRICA CENTRAL
-- 2 --
The members of the U.S. Scientific Mission were:
J. Bonilla, Geologist, USGS
Menlo Park, Ca.
G. Plafker, Research Geologist, USGS
Menlo Park, Ca.
A. F. Espinosa, Research Geologist, USGS
Denver, Co.
R. Husid, Structural Eng., USGS
Denver, Co.
K. Steinbrugge, Structural Eng.
Consultant to USGS
San Francisco, Ca.
C. Langer, Seismologist, USGS
Denver, Co.
C. Knudson, Geophysicist, USGS
Menlo Park, Ca.
Anything you could kindly do to expedite our request will be highly
appreciated.
Kjell E. Laugerud
Presidente
His Excellency Gerald Ford
President of the United States of America
Washington, D. C.
DEPARTMENT OF STATE
DIVISION OF LANGUAGE SERVICES
(TRANSLATION)
LSNO. 54650
DT/JRP
Spanish
OFFICE OF THE PRESIDENT
OF THE REPUBLIC OF GUATEMALA
Guatemala, February 24, 1976
Mr. President:
Seizing the opportunity offered by the welcome and timely
visit to Guatemala of Dr. Henry A. Kissinger, Secretary of
State of your country, I take great pleasure in conveying to
you, through him, my warm greetings and in sending you with
this note a copy of the memorandum submitted to me by the
Minister of Economy.
That memorandum, with which I am fully in agreement,
reflects my Government's official position with respect to
the conflict that exists between the Delta Steamship Lines
of the United States of America and the Flota Mercante Gran
Centroamericana (FLOMERCA) [Central American Merchant Fleet]
of Guatemala.
I avail myself of this occasion to renew to you,
Mr. President, the very special assurances of my high
esteem and distinguished consideration.
[Signed] K. E. Laugerud
His Excellency
Gerald Ford,
President of the
United States of America.
DEPARTMENT OF STATE
DIVISION OF LANGUAGE SERVICES
(TRANSLATION)
LSNO. 54650 - B
MEMORANDUM
To: General Kjell Eugenio Laugerud Garcia
President of the Republic
From: Eduardo Palomo Escobar
Minister of Economy
Subject: Government of the United States insists on repeal
of Decree 41-71 of the Congress of the Republic
Date: February 23, 1976
1. In 1971 the Congress of the Republic of Guatemala enacted
Decree 41-71 (see Annex 1) to protect national air or sea transport
companies. That law provides that importers of goods which are
exempted from import duties under the industrial development laws
must arrange for the transport of the good which they import into
the country, whether by sea or air, by national carriers. Violations
of this provision are subject to a fine equal to 50% of the freight
paid.
2. In 1973 the Delta Lines, a United States company, conferred
with Flomerca, a national company, about a partnership agreement where-
by it could enjoy a waiver and thus be able to transport all of its
cargo to and from Guatemala without having the aforesaid penalty ap-
plied to it.
Since such a partnership agreement could not be accepted by Flomerca,
in 1974 the Delta Lines filed charges with the Federal Maritime Commission
2
(FMC) and the Office of the Special Representative of the President of
the United States for Trade Negotiations.
3. The result of the aforesaid charges was that the FMC declared
that Decree 41-71 was discriminatory and agreed to impose on the Govern-
ment of Guatemala "equalization" sanctions, which consist in the pro-
vision that all cargo originating in the United States and destined for
Guatemala which is carried by Guatemalan national lines or lines asso-
ciated therewith must pay 50% of the cargo's value in addition to the
normal ocean freight charge. Furthermore, Guatemala could be excluded
from the tariff preference treatment granted by the United States de-
veloping countries.
4. Since the middle of last year the Department of State, through
its Embassy in Guatemala and through the Ambassador of Guatemala in
and
Washington, has been asking for the repeal of Decree 41-71,/is insisting
on that repeal, despite the fact that in January 1976 Flomerca and the
Delta Lines agreed on the bases for concluding a partnership agreement
that will permit Delta Lines to enjoy the pertinent waiver and operate
from the United States to Guatemala. Photocopies are attached of An-
nexes 2 and 3, submitted by the United States Embassy in Guatemala, which
demonstrate the aforesaid pressure of the Department of State, in terms
totally inacceptable to Guatemala.
5. The petition is considered unacceptable for the following rea-
sons:
(a) Guatemala has the right, as do other developing countries, to
protect and develop its merchant marine. In 1975 Guatemala
paid nearly US$88 million for transport.
3
(b) The United States has protectionist laws that could also be
called discriminatory, such as the 1918 Shipping Act; the
Jones Act, for intercoastal shipping; and Public Law 480,
which specifies the use of United States flag vessels for
the transport of cargo financed by Eximbank, AID, or IDB
Special Funds, in dollars. In other words, Guatemalan
vessels do not have free access to all of the freight
generated in the United States.
(c) Decree 41-71 gives preference only to Guatemalan vessels or
to vessels of associated lines insofar as industrial develop-
ment cargo is concerned, leaving open the rest of general
cargo, plus all of the export cargo. In this sense Guatemalan
shipping legislation is mild, compared with other protectionist
laws that exist in almost all of the Latin American countries.
In Brazil, Venezuela, Argentina, Uruguay, Chile, Peru, and
Colombia there have been protectionist laws for more than 20
years that reserve 50% of total cargo for national shipping
companies.
(d) The development of the merchant marines of the Latin American
and other developing countries is the direct consequence of
resolutions and recommendations. A11 of these measures and
laws which the countries of Latin America have been adopting
to develop their national merchant marines are the direct
consequence of resolutions and recommendations that had their
CORD
beginning with the Conference of Chapultepec of 1945 and cul-
minated with UNCTAD III in 1972, when all developing countries
were clearly urged to adopt laws protecting their merchant
4
marines, in order thus to obtain greater participation in the
ocean transport of the trade generated in their own countries.
This gave rise in UNCTAD III of 1972 to the resolution to pro-
mote the Shipping Conduct Code, on the basis of a 40-40-20
sharing of available ocean traffic.
With this instrument each developing country can negotiate with an
industrialized country that has a powerful shipping fleet the transport
of 80% of the cargo (40-40). That is to say, with this instrument, the
negotiating capacity of a country such as Guatemala is increased for
demanding a share in the ocean traffic of those industrialized and tra-
ditionally maritime shipping countries--something which a few years ago
would have been impossible.
This resolution of UNCTAD, which was approved by all of the developing
countries, was also received with understanding and a broad sense of coop-
eration by many industrialized countries--among them the Federal Republic
of Germany, Japan, France, the Netherlands, Italy, and Spain--assuring a
participation of more than 80% of the world tonnage, as advocated by the
Conduct Code and the 40-40-20 formula.
The United States, United Kingdom, Canada, and the Scandinavian coun-
tries, the latter being by tradition the owners of great shipping fleets
that engage in traffic between third countries, voted against the resolu-
tion.
For 30 years Latin America has been struggling to win positions step
by step, to shake itself free of the situation of economic dependence to
which Guatemala, as a country on the periphery, is subject. The topic of
maritime transport has been analyzed in a great many international forums
5
such as ECLA, OAS, IA-ECOSOC, SIECA, and undoubtedly it will be brought
up again by the recently created SELA. At the economic conference of
the OAS held in Buenos Aires in 1957, it was specified that the laws
protecting the merchant marines of the member countries of the OAS would
not be considered discriminatory. The United States participated in that
meeting, obtaining but not voting against that measure.
Conclusion:
In view of the preceding statements, the pressure of the Department
of State, to which reference was made in the foregoing paragraphs, is not
congruent with the position adopted by the United States in recent years
in the matter of international trade, and especially at the Seventh Special
General Assembly of the United Nations, held September 1 to 15, 1975.
Neither is it conguent with the commitments that have been internationally
acquired with respect to maritime transport.
Consequently, I believe that the Government of the United States
should review the action of the FMC and the Special Representative for
Trade Negotiations with respect to the insistence that Guatemala repeal
a law that has been in force for five years and that was adopted in the
exercise of national sovereignty. In any event, it must be kept in
mind that the Government of Guatemala is making an exhaustive analysis
of the entire policy and legislation concerning transport, and inedue
course, without pressure, the Congress will propose legislation that
may be more desirable for the country and for good international trade
relations with friendly countries.
EL PRESIDENTE
DE LA
REPÚBLICA DE GUATEMALA
AMÉRICA CENTRAL
Guatemala, 24 de febrero de 1976.
Excelentísimo Señor Presidente:
Aprovechando la grata y oportuna visita del Excelentisimo Se
ñor Secretario de Estado de Vuestro Culto Pais a Guatemala, Doctor Hen
ry A. Kissinger, me es muy grato transmitirle un cordial saludo por -
conducto de tan digno portador y enviarle junto a esta nota, copia del
memorial que me fuera presentado por el Señor Ministro de Economia.
Dicho memorial, con el cual estoy plenamente de acuerdo en -
todas y cada una de sus partes, refleja la posición oficial de mi Go-
bierno con respecto al conflicto existente entre las lineas maritimas
Delta de los Estados Unidos de América y Flota Mercante Gran Centroame
ricana (FLOMERCA) de Guatemala.
Me valgo de la ocasion para reiterar al Excelentisimo Señor
Presidente los sentimientos muy especiales de mi alta estima y distin-
guida consideración.
Excelentísimo Señor Gerald Ford,
Presidente de los Estados Unidos de America.
IW
MEMORANDUM
PARA:
General Kjell Eugento Laugerud Carcía
Presidente de la República
DE:
Eduardo Palomo Escobar
Ministro de Economía
ASUNTO:
Gobierno de Estados Unidos insiste en -
que se derogue el Decreto 41-71 del Con-
greso de la República.
FECHA:
23 de febrero de 1976
1.
En 1971, el Congreso de la República de Guatemala -
emitis el Decreto 41-71, (ver anexo 1), para proteger
las empresas nacionales de Transporte Nacional aéreo
o marítimo. Esa Ley establece que las personas im-
portadoras de mercaderías exoneradas de derechos de
importación al amparo de las leyes de Fomento Indus-
trial, están obligadas a efectuar el transporte de lo
que importan al país, ya sea por la vía marîtima o por
la vía aérea, en empresas nacionales de transporte. La
infracción a tal disposición se sanciona con una multa
del 50% del flete pagado.
2.
Desde 1973, Delta Line, empresa Norteamericana,
-
hizo gestiones anto Flomerca, Empresa Nacional, pa--
///
FORD
&
GERALD
LIBRARY
2
ra que, mediante un contrato de asociación pueda go-
zar de un welver y así poder transportar la totalidad
de su carga pare y de Guatemala sin que se le aplique
la sanción antes indicada.
Como dicho contrato de asociación no pudo ser acep-
tado por Flomerca, Delta Line, on 1974, presentó -
acusaciones ante la Comisión Marítima Federal
(FMC) y la Oficina del Representante Especial de Co-
mercio del Presidente de los Estados Unidos.
3.
E resultado de la acusación antes mencionada, fue
que la FMC declaró descriminatorio el Decreto
41-71 У acordó imponer al Gobierno de Guatemala -
sanciones "de icualización", las cuales consisten en
que toda carga originaria de los Estados Unidos y
con destino a Guatemala, transportada por líneas -
nacionales guatemaltecas o asociadas a las mismas,
deberán pagar, en adición al flete marítimo normal,
el 50% de su valor. Además podría excluirse a Gua-
temala del trato de preferencias arancelarias acor
dado por los Estados Unidos & los países en desarro-
No.
FUnD
111
?
GERALD
LIBRARY
3
4.
El Departamento de Estado, a través de su Embaja-
da en Guatemala y por conducto del Embajador de
Guatemala en Washington, desde mediados del año
pasado ha estado pidiendo que se derogue el De-
creto 41-71, e insiste en tal derogatoria, no obs
tante que Flomerca y Delta Line, en enero de 1976,
acordaron las bases para celebrar un contrato de
asociación que permitirá a Delta Line gozar el
weiver correspondiente y operar desde los Estados
Unidos a Guatemala. Se acompaña fotocopia de los
anexos 2 y 3, presentados por la Embajada de Esta-
dos Unidos en Guatemala, en los cuales se evidencia
la mencionada presión del Departamento de Estado, en
términos totalmente inaceptables para Guatemala.
5.
Se considera inaceptable dicha petición por las si-
guientes razones:
a) Guatemala tiene derecho, como lo tienen otros
países en desarrollo, a proteger y desarrollar
su marina mercante. En 1975, Guatemala pa-
gó por transporte, cerca de 88 millones de dó-
///
4
lares.
b) Los Estados Untdos tienen leyes proteccionistas -
que también podrían llamarse descriminatorias,
tales como el Shipping Act 1916, el Jones Act -
para a servicio de cabotaje, la Ley Pública 490
que especifica naves de bandera norteamericana
para ol transporte de carga financiada por el
-
EXIMBANK AID, o Fondos Especiales del BID,
on dólaras. Fs decir, que las
tampoco tisnen libre acceso a toda la carga que se
genera en Estados Unidos.
e
El Decreto 41-71, únicamente da preferencia a -
naves guatemalteca o a líneas asociadas en cuan-
to a carga de Fomento Industrial, dejando libre
el resto de la carga general, además de toda la
carga de exportación. En este sentido la Legts-
lación Navtera Guatemalteca es tímida comparada
con las demás leyes de protección que existen en
casi todos los países Latinoamericanoe, En bra...
sil, Venezuela, Argentina, Uruguay, Chile, Perú
FORD
&
///
GERALD
LIBRARY
5
y Colombia, hace más de 20 años que existen -
estas leyes de protección, reservando un 50% -
de la carga total, para las Empresas Navieras
Nacionales,
S
El fomento de las marinas mercantes de los -
países de America Latina У de los demás países
en desarrollo, son consecuencia directa do new
soluciones y recomendactones. Todas estas -
medidas y leyes que les países de América Lati-
na han venido emitiendo para fornentar sus Mart-
nas Mercantes Nacionales, son consecuencia di-
rocta de resoluciones y recomendactones que -
principtaron con la Conferencia de Chapultepec
en 1945 y que culminaron con la III UNCTAD en
1972, en la que claramento se insta a todos los
países on desarrollo a promulgar leyes de protoc-
ción para sus Marinas Mercantes con di objetivo
de obtener así una mayor participación en el trans-
porte marítimo del intercambio comercial genera-
do de sus propios países.
111
FORD
&
Tomaco
LIBRARY
6
De all? nace en la III UNCTAD de 1972 la resolu-
cton de promover el Código de Conducta Naviero
en base a la repartición 40-40-20 de la carga ma-
ritima disponible.
Con ese instruments cada país en desarrollo pue-
de negociar con un país industrializado y con potente
flota naviera, el transporte del 80% de la carga -
(40-40). Es decir, que con este instrumento, a -
un país como Guatemala se to aumenta la capacidad
negociadora para exigir una participación on el trá-
fico marítimo, a aquellos países Industrializados y
tradicionalmente navieros, cosa que pocos años -
atrás hubiera sido imposible.
Esta resolución de UNCTAD, que fuera aprobada
por todos los países en vías de desarrollo, reci-
516 también la comprensión y amplio sentido de -
cooperación de muchos países industrializados, -
entre ellos, Alemania Federal, Japón, Francia, -
países Bajos, Italia, España, asegurandose una par-
///
7
ticipación de más del 80% del tonelaje mundial
que se pronunciaba en favor del Código de con-
ducta y de la fórmula 40-40-20.
Votaron en contra, Estados Unidos, Gran Bre-
taña, Canada У los países Escandin vos; éstos
atimos por tradición dueños de grandes com-
pañías navieras dedicadas al tráfico entre ter-
ceros países.
América Latina ha luchado durante 30 años para
ir conquistando paso a paso posiciones para in
sacudiendose de la situacion de dependencia eco-
nómica a la que Gua temala como país de la pe-
riferia está sometida. a aspecto del transpor-
te maritimo ha sido analizado en múltiples fo-
ros internacionales de la CEPAL, DEA, CIES,
SIECA, CECLA, e indudablemo to que será as
llevado adelante por la recien creada SELA. $
/
En la conferencia económica de la OEA, realiza-
da en Buenos Aires en 1957, se especifico que no
serian consideradas discriminatorias las leyes
de protección a In marina mercante de los par-
ses miembros de la OEA. Estados Unidos parti-
ci66 en esa reuntón У se abstuvo pero no vots
en contra.
111
8
CONCLUSION:
En vista de todo lo expuesto anteriormente, la prestón /
del Departamento de Estado a que se ha hecho alusión en los -
párrafos anteriores, no es congruente con la posición adoptada
por los Estados Unidos en los altimos años en materia de comer-
cio internacional y espectalmente en la Séptima Asamblea Ex-
traordinaria de las Naciones Unidas, que se Ilevs a cabo del -
10. al 15 de septiembre de 1975. Tampoco es congruente con
los compromisos que internacionalmente se han adquirido en
materia de Transporte Marítimo.
De consiguiente, estimo que of Cobierno de Estados -
Unidos deberá revisar las actuaciones de la FMC y el Repre-
sentante Especial de Comercto en cuanto a insistir que Guate-
mala derogue una ley que está en vigor desde hace 5 años, emiti-
da en ejercicio de la soberanía nacional En todo caso, es preci-
so tener presente que el Gobierno de Guatemala está haciendo un
análisis exhaustivo de toda la política y legislación en cuanto a -
transporte y que oportunamente, sin presiones, propondrá el
Congreso la legislación que sea más conventente para el país
y las buenas relaciones comerciales internacionales con países
amigos.
DOC
RECD
LOG NUMBER
IX
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U.S. GOVERNMENT PRINTING OFFICE - 599-022 1976
599-022