Mr. Merry to Mr. Hay.

No. 931.]

Sir: I have the honor to inclose herewith copy and translation of the law enacted by the Congress of Salvador on March 18, 1904, in accordance with our request, to cover the objections stated in my No. 165 of February 25 to the Salvador foreign office, copy of which accompanied my No. 921 of February 25 to the Department of State.

The promptness with which the Government of Salvador acceded to our request is gratifying, and indicates that the deficiency in the prior enactment was not intentional.

It now remains for the attorneys of the Salvador Commercial Company in California to permit only such receipt for the indemnity bonds as shall be in entire accordance with the amended enactment of March 18, 1904.

[Page 541]

I trust that this matter is now definitely settled and that there will be no default in the payment of the bonds at maturity.

With assurances of my highest consideration, I beg to remain, sir, etc.,

William Lawrence Merry.
[Inclosure.—Translation.]

Law of March 19, 1904, Congress of Salvador, specifying method of indemnity payment to Salvador Commercial Company.

decree.

Article 1. The payment in representation to which refers the authorization contained in article 3 of the law of September 22, 1903, will not cancel the reclamation of the Salvador Commercial Company, and of the others interested, citizens of the United States, which shall be canceled as arranged in articles 7 and 9 of the contract signed at Washington, D. C., between the attorneys, respectively, of this Republic and of the same claimants, dated August 17, 1903.

Article 2. Notwithstanding that the general ratification contained in article 1 of the law before quoted covers the point in question, it is enacted that the bonds emitted and ordered in virtue of the same possess the guaranty of 10 per cent of the custom-house receipts, which secures the payment of said obligations in the said proportion.

Article 3. The Executive power continues authorized to expend in the cancellation of the said bonds up to 10 per cent of the customs receipts already referred to, being allowed to complete this fund of amortization with other national revenues, when by unforeseen circumstances it comes to be insufficient for the purpose for which it is intended.


F. Meija,
President (of Congress).