File No. 822.124/326.

The American Consul General at Guayaquil to the Secretary of State.

Sir: I have the honor to place the following facts before you, for consideration.

The White contract for the sanitation of Guayaquil was definitely settled December 9, 1913. It stipulates that the contractors must present documentary proof that the White Company is of English origin, and has its principal offices in London.

The Government will pay the contractors, as compensation for their services rendered in the construction of the work, twelve and [Page 520] one-half per cent of the cost. This payment comprises the earnings of the contractors, and the value of their studies, plans, specifications, reports, and estimates of the works, the direction, inspection and control in their fulfillment, the commission on the purchase of materials as per conditions stipulated, the expenses preliminary to their shipment to Ecuador, arrangement for the marine insurance, expenses of the works that ought to be prepared by the contractors, and everything in general relating to them as stipulated in this contract, without entering into the cost of the work as contained in article 18.

The contractors affirm that the house of J. G. White and Company, Limited, of 9 Cloak Lane, established in London the 10th of July, 1900, under the laws of England, has its independent representation, as per copy of its constitution, and therefore is the only one that assumes, as contractors, the rights, privileges and obligations of the present contract, and shall not be permitted, now or in the future, to transfer the contract for any motive or under any pretext to any other society, person, principal office or dependencies, established or to be established in any other country with the same or any other name; therefore the rights and obligations of this contract refer only and exclusively to the mentioned house of J. G. White and Company, Limited, London, England, and the Government of Ecuador. The engineers and other employees may be of any nationality in agreement with the Government.

The Government declares, in turn, that this contract is contained in the foregoing text, and therefore it is agreed by both parts that the contract will be without effect, and without any claim on all agreed upon, in ease the contractor fail on any of the points of the foregoing statement. For the fulfillment of this contract and their relations with the Government, the contractors will have their offices in Ecuador.

The agreement will be published immediately the contractors show their incorporation papers, which shall be inserted in conformity with the Código de Enjuiciamentos en Materia Civil; that is, that the public document or instrument by which J. G. White and Company was organized in the market of London, 9 Cloak Lane, as principal office, and independent of any other, and the legal power of attorney authorizing Mr. J. W. McCrosky [sic] to subscribe the contract and bind the company to all agreed upon.

For the fulfillment of this contract, the contractors will make their domicile in Guayaquil, where they will locate their legal representative, and submit to the jurisdiction of the judges of the Republic of Ecuador and to its laws.

They declare having full knowledge of the 23rd article of the Political Constitution of the Republic of Ecuador, which says: “Every contract which a foreigner or a foreign company celebrates with the Government, or private person, shall carry the condition of renouncing all diplomatic claims.”

I have [etc.]

Frederic W. Goding.