File No. 422.11G93/996
The Minister of Ecuador respectfully salutes the Secretary of State
and has the honor to submit to him a rough draft of the conference
he had with him at 11.15 a.m. on the 4th instant.
The Minister wishes to have an authorized and accurate record of that
conference for transmission to the Government of Ecuador and takes
the liberty of asking the Secretary of State to be so good as to
make corrections wherever needed in the enclosed rough draft, a
favor which will be duly appreciated.
[Enclosure—Translation]
Memorandum on a conference between the
Secretary of State and the Ecuadoran Minister (Elizalde)
Washington,
June 4, 1918.
Señor Elizalde answered the call of the Secretary of State.
Mr. Lansing said that he wishes to aid Ecuador and warned at the
same time that the interests due to the railway company must be
paid in order to avoid more serious restrictions being placed by
the War Trade Board on the import of cacao in the United
States.
Señor Elizalde said that the moment did not appear to him to be
well chosen for taking such measures, inasmuch as the
customshouse receipts, which are practically the only source of
revenue of the Government, had considerably decreased and a
large deficit in the estimates and deep uneasiness prevail in
the country on that account.
Mr. Lansing said that the exports of Ecuador this year are larger
than they were last year.
Señor Elizalde replied that he had not yet received the returns,
but was sure that the imports were much less than they were last
year.
Mr. Lansing asked how there was money for the German contractors
to build railways in Ecuador and none with which to pay the
interest due to the Guayaquil & Quito Railway Co.
Señor Elizalde answered that the Cuenca railway contract had been
given to a German firm, but that was before the war and that the
work was started with funds specially created for the purpose
without detriment to the income assigned for the service of
interests on the railway bonds; he added that at present work on
the Cuenca railway is suspended.
Mr. Lansing insisted that the interests must be paid in
accordance with the Ecuadoran estimates of 1917, which he showed
to the Minister, and certain parts of which were pointed out by
Mr. Lansing.
Mr. Lansing added that he thought that his opinion would have
weight with the War Trade Board and that he would be glad to
have in the promise of resumption of payment of those interests
a good argument to bring against a reduction of cacao
imports.
Mr. Lansing then said that the publication by the Government of
Ecuador of certain notes exchanged with the American Legation at
Quito had created a very bad impression and that it should not
have been done.
Señor Elizalde declared that when it happened and when Mr.
Hartman, American Minister at Quito, protested, Señor Elizalde
called upon Mr. Polk, Counselor of the Department of State, and
in expressing the regret which the protest had caused to the
Government of Ecuador, then explained to Mr. Polk that the
publication was made not with the object of stirring up of
difficulties between the two Governments, but rather of avoiding
them.
Mr. Lansing in bringing the interview to an end told Señor
Elizalde that hereafter he should talk this matter over with Mr.
Stabler, Chief of the Latin American Division, as Mr. Lansing is
going to the country for a few days.
