File No. 422.11 G93/466A.]

The Acting Secretary of State to the American Chargé d’Affaires .

[Telegram.—Paraphrase.]

The Chargé d’Affaires of Ecuador, Mr. Wither, yesterday handed to the Department telegraphic instructions received by the Legation [Page 417] from the Minister for Foreign Affairs of Ecuador. The instructions are as follows:

Intervention rejected by the Chancellery. In proof of conciliatory spirit, the Government is ready to pay 100,000 sucres if a legal representative of the railway with full powers previously fixes the amount of the claim. The contracts speak of arbitration; never of intervention. Necessary to make formal protest. Ecuador claims what is owing to her.

The Department’s telegram of May 3 makes the position of this Government sufficiently clear, and the Chargé d’Affaires was so informed.

You will emphasize the foregoing to the Ecuadorian Government and state forcefully that the matter will admit of no further delay, and that discussion of opposing claims against American company can be considered only at the proper time and after payment by Ecuador of the 100,000 sucres, which is only a small portion of the amount, regarding which there can be no dispute, owed to the railway company by the Government of Ecuador.

Wilson.