Mr. Bailey to Mr. Hay.
Guatemala , July 24, 1902 .
Sir: I have the honor to transmit herewith inclosed, for the information of the Department, extract and translation of same which appeared in the Diario de Centro America, an official organ of this Government, on the 22d instant, giving a list of individual foreign claims that have recently been paid.
Very reliable information discloses the fact that collective coercive pressure was resorted to by the respective diplomatic representatives here of England, France, Germany, and Belgium in order to bring about the payment of said claims. It appears that they as a body notified this Government that if arrangements were not made to satisfy their respective creditors on a specific date a man-of-war would take possession of each of the principal ports of the Republic of Guatemala.
Although I had previously advised this Government of the attitude of the United States Government in the matter, as instructed in Department’s No. 365 of April 10 last, no arrangement has yet been made to meet the just demands of American creditors. I recently, however, responded to a call from the minister of foreign affairs for a private conference, at which to expressed a very high appreciation for the friendly attitude of the Government of the United States respecting the adjustment of the Guatemalan foreign debt, and said that it is not the intention of this Government to discriminate between foreign creditors and especially against those of a friendly nation that had always demonstrated a spirit of leniency in the matter, and that the Government of Guatemala would try and satisfy the American creditors at an early date.
I have, etc.,
Chargé d’Affairs ad interim.