Minister Lee to the
Secretary of State.
American Legation,
Guayaquil, July 19,
1906.
Sir: I have the honor to inclose herewith (in
duplicate) a résumé of a decree issued by the Government of Ecuador for
the purpose of
[Page 628]
fostering
industries, manufactures, agriculture, pisciculture, and other similar
enterprises in the Republic.
This decree is looked upon by the people as a very important measure, and
it is hoped that ample results will follow.
I have, etc.,
decree for the protection of industries,
manufactures, agriculture, pisciculture, and other similar
enterprises in ecuador.
Considering that it is necessary to encourage the introduction and
development of new industries in Ecuador; that agriculture in its
several branches merits special protection; that the numerous
mountain streams and waterfalls in the country offer abundant means
of providing motive power and electric lights, favorable to the
economical establishment of manufacturing industries; that it is
indispensable to grant such guarantees and security as may inspire
confidence and attract foreign capital for investment in the
Republic; it is decreed:
- Article 1. To concede the free
use of the streams, waterfalls, and all natural waterways to
all who may start in the country new manufactories employing
hydraulic or electric force. This concession not to
interfere with existing rights nor with the right to draw
off water for irrigation purposes, as provided by the civil
code.
- Art. 2. To grant all such
establishments concessions of vacant government lands up to
25 hectares of land with at least 200 meters frontage on the
water supply used by the enterprise. If the factory be
started upon private lands these can be expropriated legally
by paying the value of such land as may be acquired,
according to the valuation of two appraisers, as provided by
law.
- Art. 3. To grant 200 hectares of
land to all who agree to start the cultivation of sisal
hemp, ramie, flax maguey, or other plant which produces
material for textile fabrics.
- Art. 4. Those who dedicate
themselves to the cultivation of cereals or vines will have
the concession of 50 hectares of land.
- Art. 5. Those who engage in the
raising of swine shall have permission to import animals for
breeding purposes free of fiscal or municipal dues for the
space of ten years.
- Art. 6. All permanent lakes in
the provinces of the interior which are more than 100 meters
in extent shall be considered as national property and their
use shall be conceded for a term of ten years to those who
devote themselves to pisciculture. The lakes of Yaguarocha
and San Pablo which are already stocked with fish are
excepted from this concession. After the expiration of ten
years fishing in the lakes will be open to the public. It
shall be prohibited to draw off water for irrigation, etc.,
from such lakes.
- Art. 7. Admits free importation
of seeds and plants for ten years, but should such seeds and
plants be offered for consumption, otherwise than for
planting, they shall be considered contraband.
- Art. 8. Exemption from military
services of owners and employees of such factories, except
as regards Ecuadorean citizens in case of foreign
war.
- Art. 9. From January 1, 1907,
and for ten years thereafter, import dues and surcharges on
manufactured articles imported into the country shall not be
reduced in any case where similar goods are manufactured in
the country already.
- Art. 10. The same condition as
in article 9 applies to any new industry which may be
established hereafter from the date of its beginning and for
ten years thereafter.
- Art. 11. Refers to the same
question of import dues.
- Arts. 12 and 13. Provide that
duties on raw materials required for manufactures
established or to be established in Ecuador shall not be
raised or altered for a period of ten years.
- Art. 14. Provides that goods
manufactured in Ecuador can not be taxed to an extent more
than 50 per cent of the total import duties charged on
similar foreign goods and that goods produced from raw
material grown in Ecuador shall not be liable to any tax or
impost whatever for ten years from January 1, 1907, except
in the case of sugar cane and tobacco products.
- Art. 15. Provides that all
people who have obtained concessions of government lands on
the pretext of establishing industrial factories and who do
not fulfill their project within two years of the date of
the grant shall lose their concessions and the land shall
revert to the Government.
- Art. 16. Provides for registry
of such industries, etc.
- Art. 17. Provides for the
exhibition of the products of such factories, etc., once in
every three years.
- Art. 18. That a government
commission be appointed to study and encourage the
establishment of new branches of industry.
- Art. 19 to 21. Certain
provisions as to cases where concessions are applied for by
two or more persons, or by persons without sufficient
capital, etc.
- Art. 22. Provides that so far as
may be applicable this decree shall be considered as
incorporated in the custom-house law.
Eloy Alfaro,
Supreme Chief of Ecuador.
July 3,
1906
