File No. 822.124/283.

The American Minister to the Secretary of State.

[Telegram—Paraphrase.]

A crisis is approaching in the foreign loan negotiations and attending contracts for the sanitation of Guayaquil, which will not be awarded by competition but in a manner to best subserve local politics. Foreign firms are actively endeavoring to furnish loan and obtain contracts, as well as at least one American. It is practically certain that no American can hope for success, unless strong representations be speedily made to the effect that giving this matter to any but an American firm will be considered by the Government of the United States as unfriendly. America is known to be the most advanced nation in tropical sanitation, and the American firm competing has secured the refusal of Colonel Gorgas’s services as adviser.

I beg to be instructed to urge this matter upon the Ecuadorean Government.

Schuyler.