File No. 814.51/177b.
The Acting Secretary of State to the American Chargé d’Affaires.
Washington, September 14, 1912.
The Minister of Guatemala on September 13 handed the Department the following instruction from his Government, dated September 10:
The British Legation, declaring itself to be in accord with Washington, requests arbitration of English loan matter. You will inform the Department of State that a financial arrangement is on the point of completion, and this British request will greatly embarrass it.
The Minister of Guatemala continuing to insist on the further exercise of the friendly good offices of this Government in order to procure additional delay by the British Government, the Department handed the Minister the following aide-mémoire, dated September 13, 1912:
In deference to the friendship existing between the United States and Guatemala, and as a further evidence of the good will of the Government of the United States toward that of Guatemala and its earnest desire to serve that Government by assisting it to negotiate through American bankers some satisfactory financial rehabilitation including provision for an equitable settlement of just British and other claims, the Department of State will once more informally address the British Government and urge that it withhold for twenty days its demand for arbitration, in order to enable the Government of Guatemala to effect the settlement as above indicated. But if the Government of Guatemala shall not have completed an arrangement as hereinbefore outlined at the expiration of that delay, the Government of the United States will be obliged to believe that the Government of Guatemala does not really intend to comply with its repeated promises, and under the circumstances will regret to find itself absolutely unwilling to intervene further.
The Government of the United States in this connection invites the attention of the Government of Guatemala to the latter part of Article 1 of The Hague Convention of 1907 respecting the recovery of contract debts.
If the Government of Guatemala desires that the suggested action be taken by the Government of the United States, it will be necessary that the reply be received on September 16, 1912.