File No. 422.11G93/823a.

The Secretary of State to Minister Hartman.


The Department is informed that Ecuadorian Congress has passed resolution declaring arbitration Guayaquil-Quito Railway case canceled under law of Ecuador, and that the Defensor Fiscal has been instructed to take legal proceedings to lay embargo on railway company’s properties in order to obtain immediate possession of the railroad.

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Should this be confirmed by you, make formal protest against this arbitrary proceeding which would make it necessary for this Government to consider the adoption of such measures as would give ample protection to this American corporation in its just rights.

It is needless again to point out that the failure of Judge Miller’s mission, arranged at the particular request of the Ecuadorian Government, was brought about by the failure on the part of that Government to carry out the written undertakings entered into by its accredited representative with this Government. That the Ecuadorian Government should entertain taking any such steps is all the more surprising to the Department at this time when the exercise of its good offices has been requested to assist Ecuador in obtaining a loan in this country, where the effect of the reported proceedings against the railway company will be most detrimental.

Report promptly, as the Department hopes to be able to reply to President Plaza’s proposals transmitted in your No. 130, of August 19, within a few days.