File No. 422.11G93/966a
The Secretary of State to the Ecuadoran Minister ( Elizalde )
The Secretary of State presents his compliments to the Ecuadoran Minister and wishes to acknowledge the receipt of his memorandum enclosing copies of his notes on the conversations which he had with him and with the Chief of the Latin American Division on June 4 with reference to the matter of the restriction on imports of cacao from Ecuador into the United States.
After a careful consideration of these notes the Secretary of State desires to point out to the Ecuadoran Minister that he apparently has misunderstood the purpose of the Department of State in bringing this matter to his attention at this time, and therefore desires to correct any erroneous impression which the Ecuadoran Minister may have received in respect to this matter.
In view of the fact that the Ecuadoran Minister at Washington had addressed a note to the Secretary of State requesting that no restriction on imports be placed upon Ecuadoran cacao, the Secretary of State felt that, in all justice to the Minister, the probable program of this Government in reference to the import of cacao from Ecuador should be explained to him.
The restriction on imports of certain commodities under consideration by the Government of the United States is one of vital moment for the purpose of saving tonnage for important war needs, and, as the saving of tonnage is one of the gravest questions which-must be considered at this time, all facts in connection with it have to be carefully studied. The study and decision of these matters devolve by law upon the War Trade Board, and the Department of State is in a position of merely using its good offices with that board in the interest of good relations with foreign countries.
[Page 414]The Department of State, therefore, in order to be of service to Ecuador, informed the Ecuadoran Minister that it would be in a better position to use its good offices in requesting the board that the Ecuadoran contentions, as set forth in the Minister’s note, be given more favorable consideration should Ecuador reassume her just obligations to American citizens and also make provision for the payment of her back debts in the Guayaquil & Quito Railway case. Upon consideration the Ecuadoran Minister will perceive the natural interdependence of these two matters in the present circumstances.
As the length of the haul from the ports of Ecuador to the United States is far greater than from other cacao-producing countries, it can clearly be seen that a great saving of tonnage would result by only bringing in cacao over routes where there is a short haul. It will also be quite plain that co-belligerents of the United States have the superior claim upon this country for certain privileges. The inconvenience to the United States of the concession requested by the Ecuadoran Minister is therefore readily apparent.
Viewed in this light, the suggestion which the Department of State has made in regard to the resumption of the daily deposits of interest on the railway bonds and the deposit of a certain portion of the export duties on cacao can not be construed, as the Ecuadoran Minister seems to have construed it, in the nature of an imperative demand upon the Ecuadoran Government, but is in reality a clear and frank statement of facts regarding the present situation.
It is desired, however, to point out that when all matters in connection with restriction on imports from various countries are taken into consideration, the Department of State will be in a less favorable position to present Ecuador’s desires to the other Departments of the Government than if Ecuador had proved its willingness to protect the interests of American citizens in accordance with its solemn obligations. The Department of State is informed by the branch of the Government which has the execution of the restriction of the imports under its direct control, that on June 28 all discussion in regard to these matters must be brought to a close.