File No. 422.11 G93/476.]
The Secretary of State to the American Chargé d’Affaires .
Washington , May 22, 1912 .
Inform the Government of Ecuador that the offer contained in the note of the Foreign Office to compromise revolutionary bills and claims for 280,000 sucres is entirely unacceptable and must be rejected.
You will thereupon refer to the alternative proposal of immediate payment of 100,000 sucres, with subsequent arbitration of all outstanding claims and questions between the railway company and the Government of Ecuador, and formally transmit the acceptance by the railway company of this proposal.
You will then make it clear that this Government awaits your report of the immediate payment of the 100,000 sucres in the form stated in the note of the Foreign Office, and add that the railway company desires to proceed immediately to the constitution of an arbitral tribunal.