Mr. Tillman to Mr. Olney.

No. 81.]

Sir: I had the honor to receive yesterday your No. 69 of date May 18, relative to the Santos arbitration. On the 5th of June I received from the minister of foreign affairs a communication accompanied by a letter to Mr. St. John and the agreement between the agent of Ecuador and Mr. Santos as to the amount which they are willing and ask that Mr. St. John make his award in the case [sic]. This agreement and the letter to Mr. St. John, the minister asks that I forward to Mr. St. John. The letter to Mr. St. John states it is forwarded, along with the agreement, through the American minister, and that Ecuador deems the amount agreed upon equitable to both parties interested. The amount named and agreed upon is $40,000 American gold, to be paid to the United States in four semiannual payments. I have made copies of the letter to Mr. St. John, the agreement reached and signed, and the schedule of losses and injuries, and will forward the original by this mail as requested to Mr. St. John, stating that the United States is willing that the amount agreed upon may be made the award of the arbitrator. Owing to the great number of commercial and technical terms and words descriptive of things and properties, I am not able to forward with this correct translations. They are, moreover, all intended for transmission to Mr. St. John, except the short communication to this legation. The British minister has written the British consul here, that he hopes that the interested parties would agree on the amount and I have no doubt that Mr. St. John will cheerfully award the amount mentioned in the agreement.

I inclose a copy of my letter to Mr. Jones, British minister to Peru and Ecuador, transmitting, as requested by Mr. Montalvo, the communication to Mr. St. John, and the detailed account of losses, and the agreement as to the amount the arbitrator is requested to award to Santos.

I have, etc.,

James D. Tillman.
[Page 109]
[Inclosure in No. 81.]

Mr. Tillman to Mr. Jones.

Sir: I have the honor, at the request of Mr. Montalvo, minister of foreign affairs for Ecuador, to send you herewith a letter from him addressed to Mr. St. John, the arbitrator in the Santos matter, and with it the details of losses suffered by Mr. Santos, and an agreement, signed by Mr. Santos and the agent of Ecuador, fixing the amount which they are pleased to ask Mr. St. John, as arbitrator, to award Mr. Santos as against Ecuador. It will be seen that Mr. Santos made large concessions to secure an amicable settlement. The Government of the United States will not undertake to dictate the amount which ought to be paid, but as the parties directly interested have reached an agreement, it unites with Ecuador in asking that the amount agreed upon be made the award of the arbitrator, who was so promptly appointed by you and so promptly accepted by the United States. The inclosed letter to Mr. St. John and the other inclosures you will please deliver to him upon his return from Bolivia.

I am, etc.,

James D. Tillman.