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ACTION ARA-10

INFO  OCT-01  ISO-00  EB-07  FEA-01  AGR-05  CEA-01  CIAE-00

COME-00  DODE-00  FRB-03  H-02  INR-07  INT-05  L-02  LAB-04

NSAE-00  NSC-05  PA-01  AID-05  CIEP-01  SS-15  STR-04

TAR-01  TRSE-00  USIA-06  PRS-01  SP-02  OMB-01  IO-10  /100 W
---------------------     108403
R 111700Z APR 75
FM AMEMBASSY GUATEMALA
TO SECSTATE WASHDC 6423
INFO AMEMBASSY MANAGUA
AMEMBASSY PANAMA
AMEMBASSY QUITO
AMEMBASSY SAN JOSE
AMEMBASSY SAN SALVADOR ORETW
AMEMBASSY TEGUCIGALPA


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E.O. 11652 N/A
TAGS:  PINT, GT
SUBJECT:  OPPOSITION CALLS FOR INVESTIGATION INTO POSSIBILITY OF
BANANA TAX BRIBES HERE

1.  LOCAL PRESS REPORTS THAT DURING APRIL 10 SESSION OF CONGRESS
CHRISTIAN DEMOCRATS ANNOUNCED THAT ON APRIL 15 THEY WILL FORMALLY
PROPOSE A MOTION RECOMMENDING THAT THE EXECUTIVE INVESTIGATE
WHETHER GUATEMALA'S FAILURE TO RAISE ITS BANANA EXPORT TAX WAS
DUE TO BRIBING OF GUATEMALAN OFFICIALS.

2.  COMMENT:  THE HONDURAN AFFAIR HAS CREATED EXCELLENT MATERIAL
FOR OPPOSITION ORATORS, BUT GOVERNMENT COALITION DEPUTIES ARE
UNLIKELY TO PERMIT PASSAGE OF THE DCG PROPOSAL, WHICH WOULD
HAVE NO LEGAL FORCE IN ANY EVENT.  END COMMENT.
MELOY
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