Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-04-29
GUATEMALA PRESSEDBY
BRITISH BONDHOLDERS
Great Britain Seeks Again Set
Element of Long Standing
Claims of Subjects.

Great Britain again is pressing Guate-
mala for satisfaction Of the long standing
claims Of British subjects. The attention
OF the State Department has been di-
rected to the situation by the Guatemalan
minister here, and the outcome is expect
ed to develop in some measure an indica-
ton Of the administrations policy toward
Central American republics and their
foreign debts.
A loan Of $4,000 600 to $3OOOO.OOO by
American banking houses has been un-
der way for some time, but was never
consumnated.
With it's prOceeds, it was proposed to
pay Guatemala's British debts and re-
form her currency system.
The delay has been Irritating both to
the United States and Great Britain.
Inquiries by Diplomatic Agents.
Inquiries made recently by the Mica
raguan diplomatic agents here regarding
the probable attitude OF the United States
government under the changed admins
tration toward the general question Of
the attitude Of foreign bondholders toward
Guatemala and other Central American
republics. which are in default Of interest
charges have led apparently to the err
rOneous impression in some quarters that
the State Department has learned Of a
probable attempt by European creditors
of those countries to collect their debts
forcibly.
AS a matter Of fact. the State Depart
ment under the Taft administration has
been twice addressed on this subject by
the British bondholders. through Ambas-
sador Bryce. So far as can be learned
there was no threat to repeat the Corinto
incident when, British marines having
seized and occupied that Nicaraguan sea-
port and custom house, the British claim
was settled.
In that case British honor was involved.
The claim. though financial one. was
based upon the maltreatment by the
Nicaraguans of British consular officer.
In the present instance the British gov
eminent has been concerned mainly with
the probable outcome of the efforts which
the State Department had been making
and assist the government of Guatemala
in taking up its obligations through a new
loan.
Seek Administrations Attitude.
1t is assumed that the purpose OF the
last representation on the subject is to
develop the attitude of President Wilson'S
administration toward this proposition.
Guatemala's debt to Great Britain is
not large-about 100000. The tax of
81 so on every quintal OF coffee exported.
levied by the Guatemala government to
meet the interest on her total $40. 600. coo
of foreign debt, was amply sufficient for
the purpose Guatemala afterward d.
verted the proceeds Of this tax to her
own imperative needs and since has
been reluctant to restore that application
OF the revenues.
Guatemala has another plan. Anxious
to float a further loan, sufficient to pay
off all her present Indebtedness. the Ca
brear government would refund the exist
ing debt and offer the coffee tax as Sc
curity for the payment of the interest of
the new loan This security would not be
available should the revenue be restored
again applied to payment of interest on
the existing foreign debt.
British Ultimatum Denied.
LONDON, April 29-The British gov
eminent today denied the published re-
port that it had sent an ultimatum to
Guatemala. At the foreign Office 1t was
said that all that had been done so far
was to make renewed presentation Of
Great Britain's urgent demand for the
payment OF Guatemala's indebtedness.
the bulk of which has been owing for
twenty-five years.
No date was mentioned for the presen-
tation OF Guatemala's reply, nor were
threats OF rcprisais MADE by Great
The foreign Office points out that the
time for such action has not yet arrived.
- Great Britain 10 still awaiting the an
swer Of Guatemala