File No. 422.11G93/894
Minister Hartman to
the Secretary of State
No. 195
American Legation,
Quito,
November 7, 1916.
Sir: referring to the Department’s telegram of
September 26, I have the honor to inform the Department that on October
3 I prepared and delivered to the Foreign Office my note No. 210, copies
of which are herewith enclosed.
I further have the honor to advise the Department that, upon receipt of
its telegram of October 28 I called upon the Minister of Foreign Affairs
and had the interview with him reported in my telegram of October 30,
which telegram I now confirm.
On November 4 I received from the Minister for Foreign Affairs his note
No. 48 dated November 4, 1916, in answer to my said
[Page 267]
note of October 3, copies of which,
together with translation, are herewith enclosed.
The Department will observe that the Minister for Foreign Affairs has
again raised the question of the right of the United States Government
to intervene in matters of this kind.
I have [etc.]
[Inclosure 1]
Minister Hartman
to the Minister of Foreign Affairs
No. 210
American Legation,
Quito,
October 3, 1916.
Mr. Minister: By direction of my
Government, I have the honor to inform your excellency that while it
would be greatly gratified at the securing of a loan by your
excellency’s Government and the payment of the obligations of
Ecuador to the Guayaquil & Quito Railway Company from the
proceeds thereof, it nevertheless entertains the belief that present
conditions appear to indicate that no definite arrangement for such
a loan is to be reached. And, inasmuch as the deposits of customs
receipts were suspended primarily on account of financial
difficulties consequent upon European war and more recently because
of loan negotiations, my Government believes and earnestly
recommends that your excellency’s Government should forthwith resume
the deposit of customs in accordance with the terms of the existing
contract.
I avail [etc.]
[Inclosure 2—Translation]
The Minister for Foreign
Affairs to Minister Hartman
No. 48
Ministry for Foreign Relations,
Quito,
November 4, 1916.
Mr. Minister: Causes independent of my
will have prevented me up to date from answering the communication
your excellency presented at this office on October 3 last, in which
[etc.]
Personal considerations for your excellency, whose proper demeanor
and tact this office is pleased to recognize, oblige me to answer
the points treated in the said note, but to answer them only on
account of said personal considerations, inasmuch as the attitude of
my Government regarding the acceptance of foreign intervention of
any kind in its national finances and the private contract that
binds the Guayaquil & Quito Railway Company to the State has not
changed nor could ever change, the note from this office No. 266 of
December 28, 1915,5 to your excellency
remaining therefore in force in all its parts.
Those personal considerations and the desire to be extremely
courteous to the Government so worthily represented at Quito by your
excellency induce me to refer to the essence of the note in
question: the special economic stress experienced by this country,
first on account of the European war, which has diminished the
customs receipts, second by reason of the civil war of Esmeraldas.
These have induced it to consider as of primary importance its own
existence and therefore to consider as principal ones its current
expenses in preference to others. This was the reason for the
consideration of a loan, in order to secure the means to satisfy
urgent necessities and the obligations of the nation; reasons that
are unnecessary to express made this negotiation difficult.
After the change of government, the Esmeraldas revolution having been
ended and a new, reasonable and economical budget having been
prepared, which will be in force after January 1, 1917, it is very
probable, as your
[Page 268]
excellency is well aware, that the economic situation will be
adjusted without having to apply for a loan; and when this occurs
Ecuador will be able fully to meet its obligations. This is what my
Government desires; the President and his Cabinet are thoroughly
committed to it, and I hope that this intention will be realized to
the satisfaction of all those who have an interest in the national
revenues.
I so answer the note under acknowledgement, and
I avail [etc.]
