File No. 422.11G93/894

Minister Hartman to the Secretary of State

No. 195

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.]

Chas. S. Hartman
[Inclosure 1]

Minister Hartman to the Minister of Foreign Affairs

No. 210

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.]

Chas. S. Hartman
[Inclosure 2—Translation]

The Minister for Foreign Affairs to Minister Hartman

No. 48

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.]

Tobar y Bobgoño
  1. Printed, ante, p. 261.