Mr. Gresham to Mr. Arriaga.

Sir: Referring to our conversation this forenoon, I have the honor to inform you that the so-called reciprocity arrangement between the United States and Guatemala was based on the third section of the statute known as the McKinley law, which was repealed by the going into effect of our existing tariff law, at midnight on the 27th ultimo.

This is in accordance with the opinion of the Secretary of the Treasury, in which I concur.

Accept, sir, etc.,

W. Q. Gresham.