File No. 422.11G93/824.
Minister Hartman to
the Secretary of State.
[Extract.]
No. 145.]
American Legation,
Quito,
October 19, 1915.
Sir: Referring to the Department’s telegram of
October 11, 1915, 6 p.m., and to my telegram of October 13, 3 p.m., I
have the honor to make the following report.
The first information this Legation received that the Congress of Ecuador
was even considering such a resolution was furnished it on the evening
of October 6, when a translation of the resolution, and of the report of
the mixed committee reporting the same was delivered to the Legation. At
the same time the Legation was informed that the resolutions had been
considered in secret joint session of the Congress, but that they would
probably be considered in open session before the close of Congress,
which was to, and did, close on October 8. Accordingly, on October 7 I
personally called upon President Plaza, brought the matter to his
attention and requested him to use his good offices to prevent the
passage of the resolutions. His answer to that request was that he would
speak to Dr. Baquerizo Moreno, the President of the Senate, leaving the
[Page 362]
implication that his
remarks to Dr. Baquerizo Moreno would be in harmony with my request.
The next information I received on the subject was that the resolutions
had passed Congress at 11 o’clock on the morning of October 8.
Immediately upon receipt of the Department’s telegram of October 11, I
prepared and delivered to the Minister for Foreign Affairs my note No.
154 of October 13, 1915, of which copies are herewith enclosed. To this
note no answer has yet been received.
I also enclose herewith for the information of the Department Spanish
copies of the resolutions and the committee report thereon, with
translation.
I respectfully point out to the Department that the first paragraph of
its telegram above mentioned is not entirely sustained by the
resolutions in this, that the resolutions do not instruct the Defensor
Fiscal to embargo the properties of the Railway Company in order to
obtain immediate possession thereof. But the statement is sufficiently
accurate, and certainly all the facts make a case which justify the
protest made. Indeed, I should have felt entirely warranted in filing a
note of protest even in the absence of any instruction from the
Department.
I have [etc.]
[Inclosure 1.]
Minister Hartman
to the Minister of Foreign
Affairs.
No. 154.]
American Legation,
Quito,
October 13, 1915.
Mr. Minister: In compliance with
telegraphic instructions from my Government, I have the honor
respectfully to invite your excellency’s attention to the following
important subject, and to submit some views of my Government in
relation thereto.
The fact of the passage by the Ecuadorian Congress of a resolution
declaring that arbitration of differences between the Government of
Ecuador and the Guayaquil & Quito Railway Company under the
arbitration agreement stipulated for previously has lapsed, and
instructing the Fiscal Attorney, in agreement with the Minister of
Public Works, to bring and prosecute suit against the Railway
Company in the courts of Ecuador, has been brought to the knowledge
of the Department of State at Washington.
That action of this nature should have been taken by the Congress of
Ecuador is a matter of great surprise to the Government of the
United States; and in pursuance of my instructions it becomes my
duty to make formal and earnest protest to your excellency’s
Government against such action, which, if persisted in, would make
it necessary for my Government to consider the adoption of such
measures as will give adequate protection to this American
corporation in its just rights.
That the Government of Ecuador should entertain or consider taking
such a step is all the more surprising to the Department of State of
my Government at this time when the exercise of its good offices has
been requested to assist Ecuador in securing a loan in the United
States, where the obvious effect of the reported proceedings against
the Railway Company will be highly detrimental.
Your excellency’s well known high sense of just, equitable, and fair
dealing induces me to believe, with great confidence that your
excellency will after due deliberation agree with me, that the
action of the Ecuadorian Congress above mentioned was unwarranted
and unjustified and not in harmony with the customary friendly
relations which, I am glad to say, have existed for so long a time
between our respective Governments.
I avail [etc.]
[Page 363]
[Inclosure 2—Translation.]
Resolution passed by Congress October 8,
1915.
Whereas the legal term of six months having expired within which the
Arbitrators Alfredo Baquerizo Moreno and A. L. Miller should have
pronounced on the controversy between the Government of Ecuador and
the Guayaquil & Quito Railway Company respecting said railway,
the arbitration agreement has lapsed; and
Whereas the arbitration agreement having lapsed, legal jurisdiction
is restored, according to Article 77 and Clause 2 of Article 82 of
the Organic Law of the Judicial Power. Therefore be it
Resolved by the Congress of the Republic of
Ecuador:
- Article 1. The Fiscal Attorney, in agreement with the
Minister of Public Works, shall bring suit to compel the
said Company to fulfill its obligations to Ecuador; without
prejudice, however, to the negotiation of bases for an
extrajudicial settlement or of bases for a new arbitration
not open to the objections made to the previous one, said
bases to be submitted to the Congress for its
approval.
- Article 2. With due reserve of rights and until final
judgment is rendered, the Executive may provisionally agree
with the Railway Company upon a friendly and equitable
administration and operation of the railway, disbursement of
the proceeds thereof, and application of contract provisions
not in conflict with said agreement.
- Article 3. The Executive shall publish in the national and
foreign press the facts giving rise to the said controversy
and the history thereof, and shall disburse for the purpose,
out of the extraordinary expense fund, the amount
necessary.
