No. 120.
Mr. Hall
to Mr. Bayard.
Guatemala, September 4, 1888. (Received September 20.)
Sir: Ever since my return from the United States, early in July last, I have given constant attention to the subjects of your instruction No. 563, which relates to the complaint of the Champerico and Northern Transportation Company, of San Francisco, in regard to an alleged violation of their contract with the Guatemalan Government. In pursuance of that instruction, Mr. Hosmer addressed two communications to the minister for foreign affairs, dated, respectively, the 26th of April and the 9th of June last. The former was answered on the 9th of May, and the minister’s note was transmitted to the Department with [Page 164] Mr. Hosmer’s dispatch No. 819. The communication of the 9th of June has not yet been answered.
This case has been the subject of many interviews with President Barillas, Señor Sobral, and myself. Fully a month ago it was agreed that the concession should be revoked because of its illegality, or that Messrs. J. L. Bueron & Co. should be induced to surrender and cancel it. The latter course was adopted, with the approval of Mr. Sanford Robinson, the managing director. Mr. Bueron, who lives at Quesaltenango, was sent for, and a day or two after his arrival I was informed by President Barillas and Señor Sobral that everything would be arranged to my satisfaction; that Bueron had agreed to cancel the contract and to give up his concession.
On the 31st ultimo, upon learning that Mr. Bueron was on his way back to Quezaltenango, I called upon Señor Sobral to ascertain what had been done in the premises. He could not inform me. I then called on President Barillas, and from him learned that Bueron had signed a document in the department of public works which he understood, although he had not seen it, to be the recission of the contract. He sent for it, and it proved to be nothing more than a simple memorial to the minister for public works asking for certain modifications of the original contract, in no way affecting its objectionable features, but generally leaving it in full force.
Mr. Robinson informs me that at the time the Bueron concession was granted the company were in treaty with parties in London for the sale of their property, and that in consequence negotiations were suspended and have not since been resumed.
On the 1st instant I addressed a note to Señor Sobral, of which the inclosure is a copy, in which I requested a reply to Mr. Hosmer’s note of the 9th of June last. During the evening Señor Sobral called at the legation to show me the draught of a document which he had forwarded to Quezaltenango tor Bueron’s signature; this document was in consonance with the promises made me by President Barillas.
I have, etc.,