File No. 2540/29–31.
Minister Fox to the
Secretary of State.
[Extract.]
American Legation,
Quito, June 18,
1907.
No. 51.]
Sir: I have the honor to confirm my telegram of
June 13, 1907, as follows:a
In reply to the above I received the following telegram from the
department, as follows:a
I have the honor to inform the department that I took the first
opportunity to comply with the above instructions, and on Monday, June
17, called on Mr. Carbo and personally left my note of June 17, copy of
which I inclose.
The note of the minister of foreign relations in reply to mine, received
yesterday evening, is herewith inclosed.
In consequence of this note I to-day sent the following telegram to the
department:b
It remains for me to say only that never for a moment was the good faith
of the Ecuadorean Administration doubted, but the fear did obtain that
extraneous circumstances would force action detrimental to the interest
of American citizens. The representative of these interests waited until
the last moment, and then only appealed to this legation.
I am confident that the firm position taken by the department has
strengthened the hand of the Ecuadorean Government.
I have, etc.,
[Inclosure 1.]
Minister Fox to
the Minister for Foreign
Affairs.
American Legation,
Quito, June 17,
1907.
No. 13.]
Mr. Minister: I have the honor to inform
your excellency that in view of the published facts with regard to
the proposed action concerning the taking possession of the
Guayaquil and Quito Railway by the Government of Ecuador, I am
instructed by my Government to lodge with your excellency a formal
protest against the proposed spoliation of the property and property
rights of American citizens.
I am further instructed to give formal notification to your
excellency’s Government that the President of the United States,
pursuant to article 27 of the
[Page 387]
contract between the Government of Ecuador and
Mr. Archer Karman, is ready to at once name an arbiter in settling
by arbitration all controversy or disagreements arising under said
contract.
I am charged to express the sincere hope that his excellency the
President of Ecuador will also name an arbiter pursuant to the
above-mentioned article of the contract aforesaid. In view of the
vital importance of the interests involved, the fact that the steps
already taken by the Government of Ecuador have caused serious
concern to these interests, it is therefore confidently hoped that
this action may be taken promptly to the end that all difficulties,
disagreements, and misunderstandings may be speedily adjusted not
only to the mutual advantage of the contracting parties, but at the
same time to allay all uneasiness and distrust on the part of
American citizens who have shown great confidence in Ecuador in
investing in her securities.
Fully convinced as I am of the high and honorable intentions of your
excellency’s Government, I deign to hope that the manner of
settlement, as pointed out of the vexed question, will appeal so
strongly to your excellency that I may be able to so communicate to
my Government.
I take, etc.,
[Inclosure
2.—Translation.]
The Minister for Foreign
Affairs to Minister Fox.
Republic of Ecuador, Ministry of Foreign
Relations,
Quito, June 18,
1907.
No. 69.]
Mr. Minister: Replying to your official
note of the 17th instant, in which your excellency states that in
view of the facts published in regard to the Government of Ecuador
intending to take possession of the Trans-Andean Railroad, and that
your excellency has received instructions from Washington to present
a formal protest against the proposed spoliation of the property and
property rights of American citizens. Your excellency also advises
me that you have received instructions to notify me formally that
His Excellency the President of the United States, in accordance
with the contract between the railway company and the Government of
Ecuador, is ready to appoint the arbiter to arrange the controversy
and differences that may arise, and that your excellency trusts that
the Government of Ecuador will also appoint an arbiter, in order to
form the tribunal which will solve the difficulties between the
parties, which not only will be of mutual advantage but will
overcome the lack of confidence which may arise in American citizens
who have invested capital in Ecuador.
Your excellency assures me that you are fully convinced of the
honorable intention of my Government, and you hope that arbitration
will be the means of settling all differences.
It is to be regretted, Mr. Minister, that the Government of the
United States has not had time to receive the necessary and complete
information which surely your excellency will send concerning the
matter. As soon as the proceeding of the Government of Ecuador is
known I am sure the protest will be withdrawn, because it will be
proven that there is no cause for it, as there is no reason to
charge this nation with intention to ignore the law in regard to the
railway company, which is constructing a railroad with the proceeds
derived from the sale of bonds guaranteed by the Government, the
interest of which together with the sinking fund has reached to-day
10,000,000 sucres, without including the earnings of the road which
the company has retained.
Notwithstanding the unlimited freedom of the press, there has not
been, as far as I know, any occasion in which it has been mentioned
that the railway company should be despoiled, nor insinuated that
the right of arbitration be denied, and in case this was stated,
there is no ground to believe that a government knowing its duties
would accept it.
Two days before receiving the note of your excellency the fiscal
officer had asked before the proper judge that a board of
arbitration be called, so that the protest of your excellency was
presented when the country had already given a clear proof of honest
proceedings.
Although this is not the occasion for making a complete and
reasonable defense of the rights and interests of this nation as
shall be presented to the arbiters, your excellency will allow me to
state that during the ten years the
[Page 388]
American company has been constructing the
railway there has never been occasion to appeal to its minister in
complaint of the Government of Ecuador, as can be shown by referring
to the archives of your legation and to the Department of State in
Washington. The notorious circumstance that the press of Ecuador has
always criticized the Government for giving excessive support to the
railway company will convince your excellency that the interests of
the Americans are most secure, which will be seen among other cases
of continued and decided protection. The fact that while the
railroad is only near Latacunga, the railway company has already
received bonds for the value of the whole line, when it should only
have received the proportion corresponding to the miles constructed.
This liberality of the Government had the object of aiding the
company in continuing the work so that the line might; be completed
before the 14th of June of this year, as was promised. In view of
these frank and plain statements, which your excellency can easily
ascertain, I beg of you to express to the Government of the United
States that much less than deserving a protest which is without
ground the Government of Ecuador is entitled to the respect and
consideration which it has always tried to merit, and more specially
in its international relations.
The good and uninterrupted relations which have existed between the
two Governments should prevail to-day as the best means to secure
the triumph of justice, which will insure to all the enjoyment of
their rights without appeal to violence, which modern civilization
has proscribed.
My Government congratulates itself that His Excellency President
Roosevelt, whose high standard of justice I take pleasure in
acknowledging, is ready to appoint an American arbiter, designation
of which I hope will be made as soon as he finds it convenient,
accompanied by the assurance that His Excellency President Alfaro
will immediately appoint the Ecuadorean arbiter, in order that the
board may meet in Quito and solve the questions arising on account
of the railway company not having been able to finish the road on
the 14th of this month.
Furthermore, I have the confidence that your excellency, knowing the
serious and honest intentions of the Government of Ecuador, will
please, in your high diplomatic position, and with impartiality and
straightforwardness, as is characteristic of an American minister,
inform the Government of the United States with regard to the true
situation in respect to the affairs of the railway company,
convinced as your excellency must be that between friendly
countries, understanding their rights, everything is easily
settled.
Admirer as I am of the high policy of the Department of State at
Washington, and sure that your excellency will know how to interpret
it with your usual tact, I have, etc.,
