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thorization makes no reference at all to judicial and documentary proof of the premises; and naturally the representatives of Guatemala will not in such case be able to get away from the definite arrangement which is indicated by that legislative resolution; thus the protocol of arbitration will be negotiated on a basis of the interests indicated and not on a basis of resolutions adopted and justice. I have already regretfully informed Your Excellency that my Government cannot concur in any case in the drawing up of such a protocol, prejudicial and dangerous to the territorial rights of Honduras.

Concerning the idea expressed by Your Excellency that the question of frontiers between two Central American Republics ought to be arbitrated by the International Tribunal, created for the express purpose of arbitrating questions precisely similar to that under consideration, I must lay before Your Excellency the fact that on the day of the much heralded and solemn ceremony of the signing of the Convention of the Central American Tribunal, a separate agreement to arbitrate was reached, under the decision of His Excellency the President of the United States, indicating clearly that from then on the boundary question was to be out of the jurisdiction or field of action of the said Tribunal, in accordance with and carrying out the Convention of 1914, in force in 1923, as it is today with no later act having affected its existence. This significant fact leaves no doubt that, it have [having) already [been] agreed to submit the boundary question to arbitration by His Excellency the President of the United States of America, it was not contemplated that the question might be later submitted to a different decision.

In conclusion I desire to express once more to Your Excellency the profound appreciation with which the Government of Honduras receives the generous efforts of the Government of the United States of America toward the attainment of a satisfactory solution in the pending question of the boundary between Honduras and Guatemala; and for this reason, although I must again regretfully decline to reconsider the proposal of His Excellency the Secretary of State, and because of my duty to defend the territorial rights of the Republic, I repeat to Your Excellency our frank and firm disposition to accept whatever proposal of arbitration the illustrious American Government may put forward; under the control of whatever functionary, corporation or tribunal it may see fit to designate, so organized that there could not be later a motive for nullity and the arbitral decision being based on the fundamentals of law established by Article 6 of the Convention of 1914. I do not need to remind you that the said Convention also takes into consideration the existence of the interests established (article 6) so far as their possession is by right, is legitimate, and is established according to the general principles of law and the rules of justice which in the particular case are sanctioned by the law of nations. It also seems superfluous for me to add, considering the fraternal feeling and responding to the elevated and conciliatory proposals of the Government of the United States of America, that the Government of Honduras will find it agreeable, after the judicial arbitral award, to discuss with the Government of Guatemala any agreements or formalities for the reciprocal and equitable benefit of both countries. Under such conditions the Government of Honduras would be prompt to appoint its commissioners or representatives for arranging the arbitration, either under the agreement of 1923 or under the new form the American Government might suggest, in harmony with the frank and cordial observations I have had the honor to present in detail, with due respect and honor toward the honorable mediating government.

The Government of Guatemala, bound by a present constitutional restriction, could not allege any impediment to the effectiveness of the arbitration agreed upon in 1923, since at that time there did not exist the mandate which now restrains her to such an extent as to make impossible any settlement by means of arbitration under the terms imposed. It would seem that the American Government has ample perspective with which to reach a solution which will satisfy all interests, harmonize all difficulties and guarantee all rights.

Please accept, etcetera. (Signed) F. Davila.”
Repeated to Guatemala.

SUMMERLIN

714.1515/799 : Telegram

The Minister in Guatemala (Geissler) to the Secretary of State

[Paraphrase]

GUATEMALA, August 23, 1928–10 a. m.

[Received 11:50 a. m.] 105. A memorandum was signed yesterday by the Foreign Minister and myself which reads in translation as follows:

"General Chacón, President of Guatemala, and Señor Carlos Salazar, Minister for Foreign Affairs, stated confidentially to Mr. Geissler, the American Minister, for the orientation of the Department of State in its negotiation with the Government of Honduras in the matter of the boundary that, in case Honduras should propose that the President of the United States or the Chief Justice of the Supreme Court of that country preside over the Central American Tribunal in conformity with the proposal made by the Secretary of State, Mr. Kellogg, on June 5, 1928, Guatemala would accept.” The above has been paraphrased. 51

GEISSLER

714.1515/800 : Telegram The Acting Secretary of State to the Minister in Honduras

(Summerlin)

WASHINGTON, August 30, 1928-1 p.m. 81. From the tenor and tone of the latest note from the Honduran Government transmitted in your 103, August 23, 9 a. m., the Department is satisfied that no useful purpose will be served by pursuing this correspondence further, at least until, as the result of your further conversations with the Honduran authorities you report a change in their present attitude, and the Department does not, therefore, contemplate making any reply to this communication. For your personal information and guidance in informal conversation however the Department desires to make the following observations:

51 The paraphrased translation has been replaced by a translation supplied by the editor from copy of the Spanish text transmitted in the Minister's despatch No. 2063, Aug. 22 (file No. 714.1515/807).

237576-42-57

1. The Department of course gave more than the “slightest examination” to the Convention which established the Central American Tribunal before submitting the arbitration proposal to Honduras and Guatemala. This proposal was made only after a careful and conscientious study of the Convention as the result of which the Department concluded that the Tribunal is competent to function in this matter, and after considering the arguments presented by Honduras the Department finds no reason to change its conclusion.

2. With reference to that part of the note of the Honduran Government which refers to the arbitration proposal made by Mr. Davis at Cuyamel on April 23, Mr. Davis states that he did not suggest either formally or informally that either the agreement to arbitrate announced at Washington in 1923 by representatives of both Gor. ernments at the Central American Conference, or the 1914 Treaty should form the basis of the proposed arbitration. The fact that he proposed arbitration by an arbitrator or “arbitral board” bears out this conclusion. A perusal of Mr. Davis' proposal shows that while reference is made to the announcement made in 1923 this reference was included merely to show that both countries had shown a desire to arbitrate the controversy. The Department's proposal of June 4 is, therefore, simply an amplification of Mr. Davis' proposal and suggested that the existing Mixed Commission should draw up a protocol of arbitration, which this Commission had not hitherto had the opportunity to do.

3. The suggestion that the Arbitral Tribunal should "take into consideration political, economic and commercial interests of both countries” cannot in the Department's opinion be interpreted as barring from consideration arguments based on historical grounds. The Department has no reason to believe that Guatemala has so interpreted it. In any case this point could and should be made perfectly clear in drawing up the protocol of submission.

4. In making the suggestion mentioned the Department had no reason to believe that the consideration by the Arbitral Tribunal of the political, economic and commercial factors involved would in any way weaken the case of Honduras since the Department understands that that country has strongly established interests of this nature in the disputed territory. Moreover, the Department was confident that the submission of the question to arbitration on these bases would be equally fair to both countries and offer the best way to a practicable solution.

5. The Department is much concerned at the continued refusal by Honduras to submit this question to arbitration on the bases already accepted by Guatemala. Honduras has insistently claimed that Guatemala has from time to time penetrated the disputed territory and through gradual encroachment has established illegal control in a considerable section of that territory. If this claim is true it should be apparent to Honduras that leaving the situation in its present unsatisfactory state would open the way to further penetration by Guatemala in the disputed area. The proposed arbitration offers Honduras an opportunity to end the situation to which she objects, and to establish her claims in the disputed area. It appears to the Department that Honduras in declining to accept the proposal is assuming the responsibility for the continuance of this situation.

6. The Department also desires you to submit your personal views as to the reasons prompting the Honduran Government's refusal to accept the Department's suggestion and the possibility that this suggestion may ultimately be accepted either after the elections or by another administration.

7. In your conversations with the Honduran authorities please also bear in mind the considerations set forth in the Department's telegram No. 65, July 20, 7 p. m. and in the memorandum accompanying the Department's instruction No. 272, dated July 24.52

CASTLE

GOOD OFFICES OF THE DEPARTMENT OF STATE IN BEHALF OF AMERICAN INTERESTS DESIRING TO ESTABLISH AIR LINES IN LATIN AMERICA

Pan American Airways, Incorporated

810.79611 Pan American Airways, Inc./21

The Pan American Airways, Inc., to the Department of State

NEW YORK, February 16, 1928.

[Received February 17.] GENTLEMEN : This Company's airplane “Pan-America” will leave Key West, Florida, on or about February 28th, and will cover the following itinerary, as nearly as practicable: February 28-San Miguel, Yucatan

29—Belize, British Honduras
March 1-Puerto Barrios, Guatemala

2-Guatemala City, Guatemala
4–San Salvador, Salvador

6-La Union, Salvador Instruction No. 272 and accompanying memorandum not printed; substance of the memorandum was transmitted to the Minister in Honduras în Department's telegram No. 65, July 20, 7 p. m., p. 755.

March 10—Managua, Nicaragua

13—San Jose, Costa Rica
15—Colon, Canal Zone
17—Limon, Costa Rica
20—San Juan Del Norte, Nicaragua
22-Managua, Nicaragua
24—Puerto Barrios, Guatemala
27—Belize, British Honduras
29—San Miguel, Yucatan

31—Cape San Antonio, Cuba April 1-Havana, Cuba Of course, this itinerary is only tentative, and the schedule must vary with weather conditions and delays encountered. However, it is requested that permission be obtained from the Governments of Mexico, British Honduras, Salvador, Guatemala, Honduras, Nicaragua, Costa Rica and Panama to land in these countries without having to undergo the customary formalities and complications of clearance, etc. It is also requested that the Consular Representatives of the United States at the places above mentioned, and also at places hereinafter mentioned, be notified of this flight, and instructed to render every assistance possible to the early consummation of the Company's survey work.

The purpose of this flight is to survey the most feasible airway between Key West and Colon, in anticipation of the award of a mail contract for a service over this route. It may be necessary to touch at certain additional places, particularly Corinto, Nicaragua and Tegucigalpa, Honduras,

Mr. J. E. Whitbeck will be in charge of this flight, and will be instructed to communicate his departures and arrivals to the nearest American Consul, as well as to advise both Consular and Diplomatic Representatives of the United States more exactly as to his time of arrival, when it can be determined.

It will be impossible to maintain the above schedule unless requested exemption from the customary red tape is obtained, and it is, of course, of vital importance to the Company to have this survey completed before the rainy season begins in the middle of April. Very truly yours,

PAN AMERICAN AIRWAYS, INC. By John A, HAMBLETON

810.79611 Pan American Airways, Inc./35

The Secretary of State to the Pan American Airways, Inc.

WASHINGTON, February 25, 1928. SIRS: The Department acknowledges the receipt of your letter of February 16, 1928, in connection with your plans for a flight from

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