[Extract.]

Mr. Prevost to Mr. Seward.

No. 11.]

Sir: I have the honor to transmit to your excellency copy of the reply of Mr. Bustamente, the minister of exterior relations of Ecuador, in answer to my protest, marked A, with an accompanying translation of the same into English, marked B.

* * * * * * *

Under the existing circumstances, the matter must now rest until I can receive especial instructions from the hands of your excellency.

Awaiting such instructions, I have the honor, sir, to remain, your obedient servant,

L. V. PREVOST, Acting Secretary of Legation.

Hon. William H. Seward, Secretary of State, Washington, D. C.

B.

[Translation.]

Mr. Bustamente to Mr. Seward.

I have the honor to transmit to you a certified copy of the despatch of this day’s date, which the honorable secretary of the treasury has sent to me, relative to the claim for the payment of the first instalment stipulated by the mixed commission.

I avail myself of this occasion to reiterate to you the assurances, &c.

MANUEL BUSTAMENTE.

[Untitled]

Sir: The claim made upon this department for the first instalment of the American creditors, which should have been paid upon the 17th of February last to Mr L. V. Prevost, consul, and in charge of the legation of the United States of America, is right and proper, [Page 468] and in order to fulfil it I have written this day to the governor of Guayas, instructing him to make arrangements for its payment in the months of July and August, in which the change of season will give place to the introduction of merchandise that may produce custom-duties, and the excise upon salt may cause sales for the consumption of the interior towns, which, in those months, assemble to purchase it.

The notorious paralyzation of these branches, which constitute the principal revenue of the State, have not allowed the government to pay in time the reclaimed dividend with the desired punctuality; and it is on this account that I have felt myself under the necessity of giving the order in the terms indicated.

According to the law of the treasury, which governs the matter, the payments should be made by presentation of the documents of credit. Mr. Prevost should present the certificates issued by the commissioners, so that the treasurer may note the amounts paid on account.

May God preserve, &c.

MANUEL BUSTAMENTE.

The Honorable Secretary of Interior and of Foreign Affairs.

The above is a true copy:

MANUEL BUSTAMENTE.

C.

Mr. Prevost to Mr. Bustamente.

Sir: I have the honor to acknowledge the receipt of your excellency’s despatch, under date of 25th April last, a copy of which I shall at once transmit to the honorable the Secretary of State at Washington.

I deem it my duty to remark to your excellency that the law of the treasury of Ecuador which compels the production of a document of credit to the treasurer as a voucher or proof of debt against the government, cannot govern the present case, because a special convention between the two nations has been entered into for the purpose, wherein it is stipulated in article III “se pagara al gobierno de que dependan los reclamantes.” The government of your’ excellency must have received from the commissioner on the part of Ecuador the names of the claimants, with their respective amounts, which should be furnished to the treasurer.

I avail myself of this occasion to reiterate to your excellency, &c.

L. V. PREVOST.

Hon. Manuel Bustamente, Minister of Exterior Relations, Quito.