Table 14.-Estimated Population of Guatemala, by Departments,

The country is composed predominantly of descendants of Mayan (Indian) tribes. One official estimate indicates that approximately two-thirds of the population is of pure Indian blood; other estimates run as high as 80 percent. The next largest group consists of mixed races, principally Spanish and Indian, which are known as "ladinos." By far the largest foreign immigration has been Spanish. During recent years the Government has discouraged immigration, especially of those seeking employment, and during the past 5 years emigration has slightly exceeded immigration.

It is estimated that at least 90 percent of the population is engaged in agriculture. The Indian groups grow and produce practically everything which they require, and many are employed during part of the year on the large plantations.

Language. The language of the country is Spanish; but various dialects are spoken by the Indian population, and in some of the more inaccessible sections, Spanish is understood by only a few.

Standard of Living and Purchasing Power. The standard of living among the great mass of the population in Guatemala is not high. The Indian population produces practically all the foodstuffs which it consumes. Also, the Indians weave the majority of fabrics and make most of the utensils they require. Products grown or made by the Indians are largely for their individual consumption but when produced in excess of their requirements, are traded among other groups. Except for a very few articles, such as machetes, the Indian element offers no market for imported goods; and, from the standpoint of commerce in general, it comprises a separate and distinct group, entirely isolated from

the general trade of the country. Indians working on plantations generally earn between 15 and 25 cents a day, depending largely on whether corn and other requisites are supplied as part of the wages.

While the standard of living among the "ladino" element is generally higher than that of the Indian, a large percentage has very limited purchasing power. The laboring classes are chiefly of this group. Unskilled labor generally receives between 25 and 40 cents per day of 8 hours, and the daily wage for skilled labor is rarely over $1. There is a group of "ladinos" however (constituting probably less than 10 percent of the total population), which have a moderately high earning power, and this group, together with a large part of the foreign element, provides the principal outlet for imported products; but even among these, only a small proportion has sufficient purchasing power to acquire the more expensive imported articles such as automobiles and electric refrigerators.

In Guatemala at the close of 1938 probably not over 2,100 private passenger cars and about 13,000 radio receiving sets were in use. While the market for these and similar products has by no means become saturated, these figures indicate how few are the families which have more than a very small purchasing power.

CHIEF ECONOMIC ACTIVITIES

Agriculture. Guatemala is essentially agricultural. Coffee is by far the most important money crop of the country, representing approximately 65 percent of the total value of all agricultural exports and 60 percent of the value of all exports. Coffee is grown in every Department of Guatemala, but principally at altitudes of 1,500 to 4,500 feet. The best coffee is grown at the higher altitudes. During the past decade the total annual coffee production has averaged approximately 1,000,000 quintals (765,000 bags of 60 kilos each). Fluctuations in world prices for coffee are directly reflected in the general business activity of the country.

The second most important export crop of Guatemala is bananas, which represent approximately 29 percent of the total value of exports. Bananas are grown on both the Atlantic and Pacific coastal plains. The production has increased rapidly during the past few years, and further increases during the next few years are expected as a result of new plantings, particularly on the Pacific coast. Serious damage has been caused by the Panama and Sigatoka diseases on the Atlantic coast, and only a small increase in production has occurred there in recent years. It is estimated that total production during 1939 will reach 10 to 11 million stems, as compared to only 51⁄2 million stems in 1935.

A number of other agricultural products are exported from Guatemala, including honey, sugar, cardamon seed, essential oils, and hides and skins, but none on a large scale.

Agricultural production for domestic consumption is varied, and generally sufficient for local requirements. Corn is by far the most important of these, but wheat, beans, rice, potatoes, tobacco, and practically all of the tropical and Temperate Zone fruits and vegetables are produced. Livestock is sufficient for local demands.

Forest Products and Mining.-Chicle is by far the most important of the forest products in Guatemala, exports of which normally represent approximately 3 percent of the country's total exports. The only producing area is the Department of Peten. Small amounts of mahogany, cedar, and other fine woods are exported, but the value is unimportant.

While minerals are known to exist in Guatemala, there has been practically no important commercial development. Small quantities of gold are exported annually, and there is a limited production of lead, chromite, and sulphur.

Manufacturing. Only the simplest types of manufacturing have been developed in Guatemala-the scarcity of raw materials and fuel, combined with a limited market, operating as a deterrent. One of the most important industries is textile manufacturing. There are three cotton-textile mills, two of which spin at least part of their own cotton, and two woolen mills which also spin part of their yarn. In addition, there are two mills manufacturing rayon piece goods, and five knitting mills. Fabrics of cotton, wool, and rayon are manufactured, but the products are generally of the lower qualities, for which the principal demand exists. The finer textiles are, for the most part, imported.

The soap industry is also important; and numerous small plants produce shoes and leather goods, wearing apparel, tiles, cement, tobacco products, bottled beverages (including soft drinks, beer, and liquors), foodstuffs, dairy products, and candles. A large part of the clothing used in Guatemala is made in small tailoring establishments.

Most communities are served with electric light and power, but other types of fuel are not available.

TRANSPORTATION AND COMMUNICATION

TRANSPORTATION

Travelers from the United States can reach Guatemala by airplane, railroad, or steamer, but the trip by railroad is long and difficult. An increasing number of travelers have recently made the trip by automobile; though by this method it is necessary to ship the car by rail from Veracruz to Tapachula, in 202836-40——6

Mexico, and advance arrangements should be made for a flatcar if delays are to be avoided. During the dry season the road from Tapachula to the Guatemalan border (about 20 kilometers) is passable without difficulty, and the Inter-American Highway through Guatemala has been completed and is passable without difficulty throughout the year. This road continues to the capital of El Salvador.

Steamship Service to Atlantic Ports.-The United Fruit Co. operates steamship service from the Atlantic and Gulf ports of the United States to Guatemala. All services are to Puerto Barrios, the principal port on the Atlantic coast. The following schedules are available:

From New York.-Weekly sailings, with stop at Santiago de Cuba or Tela, Honduras (alternate weeks). A stop is made at Puerto Cortes, Honduras, on return trip. Tine to Puerto Barrios, 6 days. Minimum first-class fare, $100. From Philadelphia.-Weekly sailings direct to Puerto Barrios and return. Time, 6 days. Minimum first-class fare, $100.

From New Orleans.—Weekly sailing direct to Puerto Barrios, with stop at Puerto Cortes or Tela, Honduras (alternate weeks), on return trip. Occasional stops are made at Belize, British Honduras, on southbound trip. Time, 4 days. Minimum firstclass fare, $70.

From Boston.-Usually weekly services to Puerto Barrios, with stop at Habana or Honduran port, and returning via Charleston, S. C. Primarily freight service, but limited passenger accommodations. Time, 7 days. Minimum first-class fare, $100.

No direct services are available from east-coast and Gulf ports of the United States, via Panama Canal, to the west coast ports of Guatemala.

Steamship Service to West Coast Ports.-The Grace Line, French Line, East Asiatic Co. (Danish), Italian Line, Johnson Line (Swedish), Hamburg-American and North German Lloyd Lines, Holland-American Line, and the Royal Mail Line (British) operate services from west coast ports of the United States to Champerico and San Jose, Guatemala. All services southbound from west coast ports are very irregular and the majority of the boats are primarily for freight, though carrying a limited number of passengers. Generally about seven sailings a month are available during the coffee-shipping season (January to June inclusive), but in the off season only about three sailings a month are available. Preference is given on European lines to passengers booking through passages to Europe, and the limited number of sailings makes it difficult to count on space.

Rates on "conference" line vessels (except Grace Line) from San Francisco or Los Angeles for minimum first-class accommodations are: Class "A" boats, $140; Class "B" boats, $135; freight boats, $105. Minimum first-class fare, Grace Line (all

boats are freighters, with limited passenger accommodations), $100. From Seattle an additional charge of $25 is made. Time from San Francisco to San Jose, 9 to 12 days; Los Angeles to San Jose, 7 to 8 days, depending on freight, etc.

More frequent service is available from San Jose and Champerico north, owing to the greater movement of coffee in that direction. Though regular sailings are not available, during the coffee season there is usually at least a weekly sailing. Calls, however, depend largely on freight.

Air Service.-Pan American Airways operates a through service from Brownsville, Tex., to Cristobal, C. Z., three time a week in each direction, with an overnight stop at Guatemala City. Commercial travelers from Los Angeles can also reach Guatemala via the Cia. Mexicana de Aviacion, and the Pan American Airways, but with a stop-over in Mexico City. Distance from Brownsville to Guatemala city is 1,145 miles; time, 81⁄2 hours; fare, $106.29 (including taxes). Pan American Airways also serves the other Central American countries on the Panama route, and connections can be made with the company's South American and Caribbean services. Fares from Guatemala City to points in Central America and Mexico are as follows:

A 10 percent reduction is given on round-trip tickets.

The Compania Nacional de Aviacion "T. A. C. A.” operates a regular weekly service from Puerto Barrios to Belize, British Honduras, with stops at Punta Gorda and Stan Creek, if there are passengers. Also a service twice a week is available from Puerto Barrios to San Pedro Sula, Honduras, which connects with the services of the company in El Salvador, Honduras, and Nicaragua. In addition, there is a service three times a week from Belize to El Cayo, British Honduras.

The fare from Puerto Barrios to Belize is $15 and the time 11⁄2 hours; from Puerto Barrios to San Pedro Sula, $12.50, and the time 1/2 hour.

The Compania Nacional "T. A. C. A." also operates the internal air services in Guatemala. Daily service is operated between Guatemala City and Quezaltenango, with stops at Quiche, Huehuetenango, Mazatenango, and Retalhuleu, if traffic offers. There is service three times a week between Guatemala City and Coban, with stops at La Tinta, Salama, and Rabinal, if traffic offers, and service twice weekly between Guatemala City and Puerto Barrios, via Flores and Paso Caballos in the Peten.