File No. 835.73/70
This decree appeared to the local agent of the Central & South
American Telegraph Co., Mr. Hussey, to contain an element of danger to
his company’s concession of June 22, 1885. In conformity with
[Page 38]
the Department’s subsequent
instruction I took up the matter with the Minister for Foreign Affairs
by note and orally and further spoke to Doctor Aldao. … While it may be
safely concluded that no action adverse to the concession will be taken
now, it will be seen from the opinion of Doctor Aldao, which with
translation is enclosed herewith, that the telegraph company would
probably do well to take some step looking to a renewal of the
concession which would contain certain stipulations as to its
termination in default of active preparations for the laying of the
cables contemplated.
[Enclosure—Translation]
Aldao, Campos & del Valle to the
Chargé in Argentina (
De Billier)
Dear Sir: In compliance with the request
which you were pleased to make of us we examined the facts in the
matter relating to the Central & South American Telegraph
Co.
The concession granted to the aforesaid company by the decree of June
22, 1885, is perfectly legal, since it was established by means of a
decree of the Executive power of the nation dictated in accordance
with the prerogatives conferred by Article 4 of the law of national
telegraphs of October 7, 1875.
As we are aware, this concession is in force; but we believe that the
Executive power could annul it at will, on account of its not having
been used during the 31 years which have elapsed since it was
granted.
Therefore we point out that it would not be wise to rely upon the
validity of the concession in future while no use is being made of
it, but that it would be advisable to apply to the Executive power
for a new decree, which could be obtained if the company is in
position to announce that it will lay the contemplated cable within
a reasonable period of time.
If, as you state is expected here, the existing difficulties in
Brazil will be obviated within a few weeks, the opportunity will
have arrived for the company to attempt to obtain from the Executive
power the confirmation of the said concession.
Until these difficulties are removed, we think that it will not prove
difficult to arrange to have the status quo
of the concession maintained for a certain time, in view of the fact
that the validity of the concession can not be questioned so long as
the Executive power does not cancel it as a result of its not having
been used during the long period of time which has elapsed since it
was granted.
We consider, moreover, that it would not be difficult to arrange with
the Executive power that before the concession were canceled, the
company be allowed a certain time to make use of it, under penalty
of cancelation if within the time so fixed the company fail to have
constructed or have begun to construct the cable in question.
As you know, the present term of the Executive power ends the 12th
instant, and, on this account, it is absolutely certain that some
time will elapse before the new government will be able to turn its
attention to this matter.
Yours [etc.]
Aldao, Campos & del Valle
By R. C. A.
