File No. 422.11G93/682.

The Minister of Ecuador to the Secretary of State.

Sir: It is highly satisfactory to me to confirm all that I had the honor to state to you verbally this morning at the conference in presence of Mr. Moore about the causes on account of which the Tribunal Arbitral, which must investigate and settle every controversy between the Government of Ecuador and the Guayaquil and Quito Railway Company, has not yet been organized. Omitting here the reasons on which I based my remarks, I stated to you:

That my Government had never believed any protocol or arrangement to be necessary previous to the organization and exercise of its functions by the Tribunal Arbitral;

That according to the constitution and laws of Ecuador, all conventions with another Government, no matter by what name they may be designated, are subject to the approval of Congress and to a long proceeding;

That my Government is very solicitous that the Tribunal Arbitral be organized as soon as possible, because every delay redounds to the prejudice of its interests and to the benefit of the Railway Company which administers and exploits the railroad from Guayaquil to Quito and uses its revenues arbitrarily as if it were the owner, sole and absolute;

That it desires, consequently, that the Honorable Judge A. L. Miller, the Arbiter named by President Wilson in conformity to the contract of June 14, 1897, may go as soon as possible to exercise his office in Ecuador;

That it is completely certain that the Arbiters will not have the least inconvenience on the part of the Government of Ecuador in the performance of their work, but on the contrary, every support and facility which are in its hands to give to them;

That now that the Arbiters are already named, they need do nothing except to present themselves at Quito and take possession of their office before the proper Ecuadorean judge;

That by virtue of this act they will become a Tribunal Arbitral independent of every authority or court of Ecuador or the United States;

That the Arbiters are Amigables Componedores and are not obligated to apply the laws of any nation to reach a decision, and must be inspired only by the dictates of justice and equity according to their conscience and best knowledge and judgment, taking as their basis the antecedents of the case;

That they are likewise competent to determine the form of the judgment, which will have to be final, according to what they shall [Page 496] deem convenient to know the controversies and the establishment of the truth. [Sic]

That, in a word, they are invested with the most ample powers to settle whatever questions the contending parties may submit to them in accordance with the stipulation the contract [sic] of June 14, 1897.

That in the case of judges of the antecedents and character of Messrs. Miller and Baquerizo Moreno it is to be expected that, as soon as they meet and take possession of their office, they will commence to fulfill their mission, themselves removing and settling every doubt, difficulty or disagreement which may be presented to them, upon every point concerning the judgment, for which purpose they have sufficient power and authority.

And as consequence of what I have said, I conclude by expressing the security which my Government feels, that Judge Miller will not have any reason to postpone longer his trip to Quito. And the same security I again express in this note of confirmation which I finish by reaffirming to you the sentiments of my most distinguishing consideration.

I have [etc.]

G. S. Córdova.