Mr. Hunter to Mr. Hay.

No. 186.]

Sir: Referring to the Frank Pears case in Honduras, I have the honor to transmit herewith inclosed copy of a letter sent to this legation by the Honorable Angel Ugarte, the diplomatic representative of Honduras to Guatemala, in which is embodied a telegraphic communication from President Terencia Sierra on the Pears affair.

You will observe that the President expresses great surprise at our Government’s refusal to submit the case to arbitration.

On April 25 last I made demand for reparation on the Government of Honduras, in accordance with Department’s instructions No. 131, of March 16, 1899, to which no reply has yet been received. I shall push the demand and keep the Department advised of the progress of the case.

I have, etc.,

W. Godfrey Hunter.
[Inclosure.]

Mr. Ugarte to Mr. Hunter.

Mr. Minister: In fulfillment of your excellency’s desires, I have the honor of transcribing the telegram which the President of Honduras addressed to me and which I communicated to your excellency in our last interview. It reads as follows:

“To Dr. Angel Ugarte, Guatemala:

“It would, in truth, be inexplicable and strange that the American Government should refuse to submit to arbitration the claim made on account of the Pears affair, it being that Great Britain, a European country, which has heretofore followed a policy so exacting with the Latin-American Republics, has just set the example by submitting to that mode of decision in the Lottie May incident, and notwithstanding that the note from the Marquis of Salisbury seemed to put an end to all discussion.

“Your report has greatly surprised me, as I was hoping for other procedure on the part of the American Government, with which that of Honduras has cultivated the best relations of friendship; besides, the news which I had from New York had made me quite tranquil because the sub-Secretary of State, Dr. D. J. Hill, has assured Mr. Bolet Peraza, the consul of Honduras, as also the vice-president of the syndicate, that the Government of the United States would treat the matter with all the consideration to which the Government and the people of Honduras are entitled, to the end that the proof in the case be well established and that he hoped all would result satisfactorily and justly.

“Before that conference, Mr. Sprague, vice-president of the syndicate, presented a memorial with the object that opportunity might be given the Government of Honduras to be heard in regard to the death of Mr. Pears with the certainty that there would be found extenuating circumstances which would at least relieve the Government and inhabitants of the country from the charge of a conscious violation of the laws of hospitality and of the protection due American citizens resident in Honduras.

“Mr. Sprague mentioned that the Government of Honduras is friendly to the United States and animated by sentiments of sympathy toward the Americans resident here; that the actual President uses his influence to a very marked degree for the protection of American interests in Honduras, and furthers their development to the utmost limit; that it would be quite ungenerous to compel the Honduranians to make peremptory payment of an indemnification for the death of Pears without giving the Government of Honduras a hearing, and without having clear information as to the circumstances of the deed, and that the other American interests which have taken root in Honduras would be notably injured by any precipitate and undue action on the part of that Government.

[Page 678]

“With such antecedents it was natural to think that arbitration was the most acceptable mode of resolving the difficulty in a friendly manner, and I do not lose hope that we may yet arrive at that result.

“Nevertheless, inasmuch as Minister Hunter has sent his communications, we shall endeavor to obtain the best documents in which to found the reply which this Government must give.

“I remain, etc.,

Terencio Sierra.

I take the liberty also of calling your excellency’s attention to the reason which I had the honor of making known to your excellency in supportof the ideas contained in the above telegram, and which I have no doubt the American Government will take into consideration in the prosecution of this unfortunate occurrence.

I take this opportunity of renewing, etc.,

Angel Ugarte.