File No. 422.11 G 93/607.

The American Chargé d’Affaires to the Secretary of State.

No. 197.]

Sir: I have the honor, with reference to my unnumbered despatch of the 11th instant, with which I transmitted a letter from the American Arbitrator, Dr. Janes, saying that he had refused to take the oath of office on the occasion that the Judge of Letters called at his house for the purpose of administering it, to inform the Department that the next move on the part of the Ecuadorean Government was to address a note to this Legation (No. 249, dated March 14, 1913) to which the Legation replied by note No. 159 of to-day’s date. This note was prepared after consultation with Dr. Janes.

I have [etc.]

Rutherfurd Bingham.
[Inclosure 1—Translation.]

The Minister for Foreign Affairs to the American Chargé d’Affaires.

No. 249.]

Sir: I have the honor to transcribe to you for your information the following communication, No. 171, dated the 13th of the present month, which the Minister of Public Works sent to me:

The Minister of Foreign Affairs and Justice: I believe it proper to inform you, in order that you may bring it to the knowledge of the Chargé d’Affaires of the United States of North America, that Dr. Manuel R. Balarezo, Government Attorney, requested the Judge (Juez de Letras) of the Province of Pichincha to administer the oath of office to Dr. Henry L. Janes and Dr. Alfredo Baquerizo Moreno, for the discharge of the important office of Arbitrators, to which they have been appointed respectively by the Governments of Ecuador and the United States of America, for the purpose of deciding the controversies between the Government of Ecuador and the Guayaquil and Quito Railway Co. This request was caused by the consideration that the Agents (having full power of attorney) and the Attorney of the Guayaquil and Quito Railway Co. have raised difficulties to having this oath taken before the Supreme Court.

The Government has designated the Senate Chamber as the office or meeting-place of the Arbitral Tribunal for the beginning of its labors.

The Government of Ecuador believes that the Arbitrators should take the oath of office in conformity with the motion made by Dr. Balarezo, the Government Attorney, but the Representative of the Railway Company states that he does not consent to the oath of office being taken in the manner indicated above. This opposition prevents the immediate organization of the Tribunal and commencement of its labors, which is what the Government of Ecuador has desired and continues to desire with eagerness.

God and Liberty.

Modesto A. Peñaherrera.

Accept [etc.]

Luis N. Dillon.
[Inclosure 2.]

The American Chargé d’Affaires to the Minister for Foreign Affairs.

No. 159.]

Mr. Minister: I have the honor to acknowledge receipt of the note of your excellency No. 249, of the 14th instant, in which you transcribe at the suggestion of the Minister for Public Works a communication from that Ministry stating that proceedings have been initiated before the Second Judge of Letters of Pichincha Province to the end that the arbitrators designated according to the terms of Article 27 of the railway contract of 1897 may enter upon their duties. The Minister for Pubilc Works adds that this action has been made imperative [Page 486] because of difficulties, which he does not specifically indicate, raised by the representatives of the Guayaquil and Quito Railway Company in this important matter, preventing the realization of the original plans, which were, to have the oath administered as a befitting courtesy by the President of the Supreme Court of Ecuador.

It cannot but remain a matter of keen regret that there should exist such an apparent variance of views regarding the character and dignity of a Tribunal upon which the President of the United States has, in accordance with a request from the Government of Ecuador transmitted through official diplomatic channels, named his representative. The steps which the State’s Attorney of Ecuador has now inaugurated before the local courts of justice appear strange in the light of the knowledge of the simple and direct methods which led to the organization of the previous arbitration in the month of October, 1907.

In view of the above, and with a desire to clarify the present situation, I hasten to inform your excellency that the disinclination of the American Arbitrator to take an oath of office as arbitrator In the present case before the Judge of Letters, was due to the natural fear that an erroneous significance might be attached to such act on his part, particularly by encouraging a possible misconception as to the generally accepted character of the arbitration expressly provided for under the contract for the final settlement of all differences and disputes arising between the Government of Ecuador and the Guayaquil and Quito Railway.

The American Arbitrator states to me that he has from personal conversation with his excellency the Minister for Public Works been greatly gratified to learn that the present action of the State’s Attorney in petitioning the Judge of Letters in the matter is not to be construed as implying a submission on the part of the arbitrators to the jurisdiction of the court by whom the oath is by courtesy administered, that it is not the understanding of the Government that the Arbitral Tribunal about to be constituted will be governed by local laws and procedure, and that the award contemplated by Clause 27 is de natura unquestionably final. From this, it would appear that no insuperable obstacles had in fact presented themselves to the immediate organization of the Arbitral Tribunal. It accordingly gives me pleasure to inform your excellency that if the Foreign Office will formally renew this statement to the Legation, Doctor Janes will be prepared at any time to take the oath of office, before any officer who is by law empowered to administer oaths, upon the bases which it is understood by Doctor Janes from Doctor Penaherrera the parties have already tentatively adopted for the guidance and assistance of the arbitrators in the discharge of their high duties.

I avail [etc.]

Rutherfurd Bingham.