Papers Relating to the Foreign Relations of the United States, With the Annual Message of the President Transmitted to Congress December 6, 1904

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.