File No. 822.124/302.

The American Minister to the Secretary of State.

No. 15.]

Sir: Referring to recent telegrams exchanged between the Legation and the Department concerning the contract for the sanitation of Guayaquil, I have the honor to inclose copies and translations of a letter written by the president of the committee in Guayaquil having charge of the awarding of the contract.

In view of the extraordinary wording of this letter, I have brought it to the attention of the President and the Minister for Foreign Affairs with the statement that it would, if allowed to pass without protest, constitute a serious discrimination against the American firm interested in obtaining the contract, which discrimination I was sure was far from being the desire of the Ecuadorean Government.

The Minister for Foreign Affairs informed me yesterday that the Government had telegraphed to Guayaquil to inquire into this matter and that he could assure me that no discrimination whatever was intended against American interests. He also stated that the President of the Republic had decided to leave the matter of the awarding of the contract entirely in the hands of the Guayaquil committee, but that he personally thought that it would be unlikely that the committee would itself decide so important a matter without referring it to the Congress, which is to meet on August 10.

I may add that there is great anti-American feeling in Guayaquil and that efforts will certainly be made by the interests there to defeat the awarding of any important contract to American interests unless the Government of the United States takes a very firm and active position in the case.

I know of no other American firm at present except MacArthur Bros., of New York, which is trying to obtain the contract.

I have [etc.]

Montgomery Schuyler, Jr.
[Inclosure—Translation.]

Mr. Illingworth to Mr. Brooks.

In the session of this date I have brought to the attention of the committee over which I preside the proposal which you, in the name of MacArthur Bros., of New York, sent me dated June 19. The committee directs me to tell you that as it is treating with other European firms, which before you have spoken of contracts for the sanitation of this city, it is not possible for the moment to [Page 509] consider your proposal. However, if no definite arrangement is concluded with the other firms, it would have much pleasure in taking into consideration your proposal, in which event you will be duly communicated with.

Yours, etc.,

Juan Illingworth,
President of the United Committees of Sewerage and Water Supply.