722.65/Orig.: Telegram

The Minister in Ecuador (Hartman) to the Secretary of State

Morning papers publish following clauses from memorandum presented to Government of Ecuador by Colonel Bendetto Accorsi, Chief of the Commercial Delegation of the Italian Government who arrived in Quito a few days ago:

  • “1st, Italy will send a minister resident to Quito and a consul of career to Guayaquil;
  • 2d, an Italian company guaranteed by the Italian Government will establish an aero service for mail in the triangle Quito, Cuenca, Guayaquil;
  • 3d, the Ecuadorean Government will cede to Italy the monopoly of tobacco in leaf with guarantees for the manufactured tobacco in the entire Republic. In exchange the Italian Government grants to Ecuador a credit of 30,000,000 sucres for use exclusively for following purposes:
    Ten million sucres for construction of the railroad from Quito to Esmeraldas.
    Ten million for construction of the railroad from Puerto Bolivar to Cuenca and Loja.
    Ten million for the railroad from Guayaquil to St. Elena and the respective wharves each one of these ports.

Preference to be given to Italian companies for the exploitation of mines and coal, petroleum, minerals, forests, et cetera not only on the continent but also in the Galapagos Islands.”

Newspaper reports President called a meeting of the Cabinet yesterday to consider the memorandum.

Will report developments.