Messrs. Hopkins & Hopkins, counsel for the Salvadorean Government, to Mr. Hay.

Sir: At the request of the minister of El Salvador, we have the honor to transmit herewith for the files of the Department copy of an agreement entered into on the 17th of August, 1903, between the Republic of El Salvador and the Salvador Commercial Company et ah, judgment claimants against that Republic. Under the terms of this agreement the claim in question is satisfied in full.

We are, etc.,

Hopkins & Hopkins.
[Inclosure.]

articles of agreement.

1. The Republic of Salvador and the Salvador Commercial Company et al., the parties hereto represented, respectively, by Messrs. Hopkins & Hopkins, of Washington, as counsel, and Col. John P. Irish, of San Francisco, as attorney in fact, being desirous of harmoniously adjusting and settling the claim of the said Salvador Commercial Company et al. against the said Republic of Salvador, and each being clothed with full powers in the premises, have met and agreed upon the following terms:

2. The Republic of Salvador will, within four months from the date of this instrument, deliver to the Union National Bank, of Oakland, Cal., as trustee for the claimants, national bonds of said Republic, secured by 10 per centum of the customs, equivalent in value to 67½ per centum of the award made on May 8, 1902, under the Hay-Zaldivar protocol, of $523,178.64.a

3. Said bonds to be issued in seven series, representing their respective years of maturity, namely: 1904, 1905, 1906, 1907, 1908, 1909, and 1910, each serial issue being as follows: 36 bonds of $1,000 each; 11 bonds of $500 each; 74 bonds of $100 each; 20 bonds of $50 each; 1 bond of $68.45; 1 bond of $97.30; 1 bond of $94.53; 1 bond of $38.37; 1 bond of $158.91; 1 bond of $91.81.

Bonds of the series of 1904 shall fall due on the 8th day of May of that year, and bonds issued covering succeeding years shall fall due on the 8th day of January of such years.

4. Said bonds to be in the following form, in English and Spanish, and to bear interest at the rate of 6 per cent per annum from May 8, 1902:

$______U. S. gold coin.

No_________

Series______

Republic of Salvador.

National indemnity bond.

Issued pursuant to law of the Republic, in accordance with provisions of agreement dated Washington, August 17, 1903.

The Republic of Salvador will pay to the Union National Bank, of Oakland, California, trustee for the lawful owner thereof, as evidenced by certificate of [Page 534] ownership corresponding to this obligation, the sum of ______ dollars, in gold coin of the United States, at the said Union National Bank, of Oakland, California, on the 8th day of ____, 19—, with interest from May 8, 1902, at the rate of six per centum per annum.

______ ________.

San Salvador, ______ ________.

5. With each bond issued as above by the Government of Salvador, a certificate corresponding to such bond shall be simultaneously issued and delivered to said trustee for delivery to the claimants, said certificate to be, in all respects, negotiable and likewise receivable, at the option of the holder, for customs dues, by the said Government, to its full value, in local coin or currency, equivalent to United States gold: Provided, however, That Salvador shall not be required to accept the same for customs dues in excess of the additional per centum duty levied in order to fulfil this agreement. Said certificate shall be in form as follows, in both English and Spanish:

$______U. S. gold coin.

No_________

Series______

Republic of Salvador.

Certificate of ownership.

This certifies that there has been deposited with the Union National Bank, of Oakland, California, as trustee for _____, one national bond of the Republic of Salvador of the value of _____ dollars, United States gold, payable on the ____ day of _____, 19—, with interest at six per cent per annum from May 8, 1902, and when so paid the said Union National Bank, trustee, will thereupon pay such amount, with interest, to the lawful holder hereof.

This certificate is negotiable and is, at the option of the holder, also receivable for customs duties within the Republic of Salvador to its full value, in local coin or currency equivalent to United States gold, in accordance with the provisions of article 5 of agreement, elated Washington, August 17, 1903, and printed on the reverse of this certificate.

Given at San Salvador, the ______ day of _______, 19__.

_____ _____

_____ _____

6. Said certificates shall be apportioned among the several claimants in the following manner:

[Page 535]
Salvador Commercial Company:
252 certificates, $1,000 each $252,000.00
70 certificates, $500 each 35,000.00
392 certificates, $100 each 39,200.00
140 certificates, $50 each 7,000.00
7 certificates, $68.45 each 479.15
333,679.15
H. H. Burrell:
21 certificates, $100 each 2,100.00
7 certificates, $97.30 each 681.10
2,781.10
Lewis Maslin:
49 certificates, $100 each 4,900.00
7 certificates, $94.53 each 661.71
5,561.71
J. H. Ellis:
14 certificates, $100 each 1,400.00
7 certificates, $38.37 each 268.59
1,668.59
J. B. Hayes:
7 certificates, $158.91 each 1,112.37
G. F. Thompson:
7 certificates, $500 each $3,500.00
42 certificates, $100 each 4,200.00
7 certificates, $91.81 each 642.67
8,342.67
Total:
Salvador Commercial Company 333,679.15
H. H. Burrell 2,781.10
Lewis Maslin 5,561.71
J. H. Ellis 1,668.59
J. B. Hayes 1,112.37
G. F. Thompson 8,342.67
Grand total 353,145.59

7. Bonds to be paid by the Government of Salvador or by an authorized agent of that Government at the Union National Bank, of Oakland, Cal., on the 8th day of May, 1904, and on the 8th day of January of each year thereafter following, when, upon presentation of the certificates provided in paragraph 5 to the trustee, payment in full shall be thereupon made to lawful holders thereof by said trustee. The right is reserved to the Government of Salvador to redeem, at its option, any and all bonds issued pursuant to this agreement prior to maturity.

8. The Government of Salvador will notify the Department of State of the United States upon making payment to the trustee, and the latter will inform the Department of State upon payment or default.

9. The contracting parties further agree, each with the other, as follows: That the payment in full of said bonds, as herein provided, shall operate as a settlement of the claim known and described as the Salvador Commercial Company et al. against the Republic of Salvador arising out of a certain concession granted by said Republic to “El Triunfo Company, Limited,” and the same shall be considered as a full and complete payment of all and any claims held by said Salvador Commercial Company et al., as above described, against the said Republic; conditioned, however, upon the faithful performance of the undertakings herein entered into.

10. The Salvador Commercial Company et al. hereby renounce and relinquish in favor of the said Government of Salvador all their right, title, and interest in and to the corporation known as El Triunfo Company, Limited; it being understood and agreed, however, that the said Government of Salvador assumes no liability whatsoever on the part of the Salvador Commercial Company et al. as shareholders in the El Triunfo Company, Limited.

11. This agreement shall be submitted to and ratified by the National Assembly of Salvador on or before the expiration of sixty days from this date, of which ratification the Government of Salvador will notify that of the United States by cable. A copy of this instrument shall be filed in the State Department.

In faith whereof the said parties for and on behalf of their respective principals have hereunto subscribed their names and affixed their seals.


For the Republic of Salvador:
[seal.]
Hopkins & Hopkins,
As Counsel.
For the Salvador Commercial Company et al.:
[seal.]
John P. Irish.
As Attorney in fact.

Witnessed by:
F. Blair Shoemaker.

D. I. Murphy.

Approved this 17th day of August, 1903.

[seal.]
Rafael S. Lopez,
Envoy Extraordinary arid Minister Plenipotentiary, Salvador.