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  4. Document 537

Mr. Hay to Mr. Merry.

Department of State,
Washington, February 9, 1904.
No. 576.]

Sir: Supplementing instruction No. 575, of the 4th instant, on the subject of the claim of the Salvador Commercial Company against the Government of Salvador, I have now to call your attention to the essential points in which the legislation of Salvador fails to comply with the agreement of August 17, 1903, namely:

(1)
It does not secure the bonds by 10 per cent of the customs, which is required by article 2 of the agreement; and
(2)
It makes the delivery of the bonds payment of the claim, whereas under section 9 of the agreement the award on the claim is not to be deemed satisfied unless the bonds are paid at their respective dates of maturity.

I am, etc.,

John Hay.