File No. 835.73/66

The President of the Central & South American Telegraph Co. ( James A. Scrymser) to the Secretary of State

[Memorandum—Extracts]

Through the powerful influence of the Department of State and the American Ambassador to Brazil, the Central & South American Telegraph Co. expects shortly to conclude its contract with the Government of Brazil, for the laying of two separate cables between Buenos Aires, the company’s present terminal, and the cities of Santos and Rio de Janeiro in Brazil, and thus provide an American-owned cable connection from the United States to the Republic of Brazil. …

Taking it for granted that no serious obstacle will be met with at the Brazilian end, the establishment of the first means of a direct all-American telegraph communication between the United States and Brazil depends solely upon the successful negotiation of an agreement between this company and the Government of Argentina for the laying of two separate cables between Argentina and Brazil, one to land at Santos and the other at the city of Rio de Janeiro, in accordance with the landing rights which the Brazilian Government contemplates granting to the Central & South American Telegraph Co.

By a concession granted by the Argentine Government in 1885, when it was supposed that one cable between Argentina and Brazil would be amply sufficient, the Central & South American Telegraph Co. was authorized to “establish a cable from the coast of Brazil to the capital of the Republic.” The decree in full is attached.

This, concession was granted absolutely without limitation as to time, and the fact that it exists in the archives of the Department of State should be a sufficient guarantee of its validity.

On June 3, 1909, the Argentine Government granted to the Western Telegraph Co., Ltd., the British corporation heretofore alluded to, a concession for the laying of a submarine cable between the island of Ascension and the Argentine Republic.

This concession of 1909 contained no reference to the prior and still existing concession of 1885 held by the Central & South American Telegraph Co., and yet Article 17 of the 1909 concession provides [Page 36] a preferential right for the Western Telegraph Co. which is almost identical to that of the Brazilian concession … of June 30, 1893.

In connection with our concession of 1885, I attach a copy of a telegram received from our manager in the city of Buenos Aires, Mr. Hussey, dated September 21.1 By noting this telegram you will see that the Director General of Telegraphs of Argentina intimates that our concession of 1885 “has been abandoned.”

It is quite apparent that the Western Telegraph Co., realizing that the decision of the Supreme Court of Brazil will be in favor of the American company, has now entered into negotiations with the Director General of Telegraphs of Argentina to cancel our contract rights and, in fact, prohibit American cable communication to be established with Brazil, as there is every probability that Brazil will authorize it to do shortly.

Undoubtedly the Brazilian Government is anxious to have the three Americas connected telegraphically and is particularly anxious for the establishment of cable communication with the United States by means of an American-owned cable. If the Brazilian Government had thought otherwise it would not have backed our claims with reference to Brazilian rights and would have supported the continuation of the present English monopoly.

The Central & South American Telegraph Co. could not carry out the provisions of the 1885 concession granted by Argentina until the English monopoly was removed and this company was permitted to enter Brazil.

This being the situation, I have to ask that the Honorable Secretary of State will instruct the American Embassy at Buenos Aires to endeavor to secure respect for the contract of 1885, as it was through no fault of this company that the said concession did not become operative.

Furthermore, I respectfully request that, in obtaining the said confirmation, the Embassy should endeavor to secure permission to alter the word “cable” in the existing concession to the word “cables”.

Respectfully submitted,

James A. Scrymser
[Enclosure—Translation]

Cable concession issued by the Department of the Interior of Argentina to the Central & South American Telegraph Co.

In view of the papers presented by his excellency the resident Minister of the United States, Gen. D. Thomas O. Osborn, in communicating the proposal of the “Central & South American Telegraph Co.” to establish a cable from the coast of Brazil to the Capital of the Republic, which proposal has been recommended by the Government of the United States and in accordance with the reports of the Director General of Posts and Telegraphs:

1st.
That the establishment of the cable would be advantageous for the public service;
2d.
That the concession solicited in regard to national lands for the line, and right of expropriating private lands which might be necessary, are provided for and granted under the national telegraph law of October 7, 1875.

[Page 37]

It is resolved: 1st. To concede to the “Central & South American Telegraph Co.” the right to establish a telegraph cable to the Capital of the Republic subject to the regulations of the law mentioned and to the regular jurisdiction of the nation.

2d. Communicate, publish and insert in the National Register and pass to the Department of Foreign Relations to take effect.

  • Roca
  • Benjamin Paz
  1. Not printed.