Papers Relating to the Foreign Relations of the United States, 1918

File No. 422.11G93/957

The Ecuadoran Minister ( Elizalde ) to the Secretary of State ¹

Washington , June 13, 1918 .

I have instruction from my Government to communicate to you the following:

That the real ultimatum proposed by the Department of State to the Government of Ecuador to oblige the payment of interests to the railway has caused great surprise;

That the American Legation in Quito must have informed the State Department about the financial situation of last month, which, due to the American and Allies’ prohibitions, was very trying, so much so, that it was not even possible to cover the expenses of the administration, and caused the suspension of payment of the public debt;

That the mere demand of the State Department, supported by the threat to prohibit the importation of cocoa, constitutes a hostile act which does not correspond to the recent tokens of sympathy shown towards the United States;

That the President of Ecuador in consideration of the present circumstances took upon himself not only the responsibility of not carrying out the legislative decree which ordered an action against the company in the national courts, but also authorized the railway company to increase the rates by 10 and 5 per cent;

That Mr. Norton, president of the company, was recently in Quito and did not make a reclamation;

That if the threat is carried out, it would be necessary to explain to the cocoa exporters the real cause, which would be injurious to the American interests in Ecuador;

That the mere publication of the reason would affect the principles of respect for the rights of weaker nations, which rights have been championed, specially of late, by the United States;

To investigate if the free and unlimited importation of Ecuadoran products to the United States would be guaranteed on the condition of paying, to the extent that is possible, the interest to the railway company.

1. The file copy of this document bears no date or signature, but the following notation appears on the margin: “Handed me by Ecuadoran Minister June 13, 1918 R. L.”