818.6363 Am 6/108: Telegram

The Chargé in Costa Rica (Thurston) to the Secretary of State

131. My 114 August 12, 10 a.m. and 118 August 18, 5 p.m. British Minister delivered note dated November 8th to the Minister for Foreign Affairs respecting Amory petroleum and Royal Bank of Canada claims which is virtually an ultimatum. British war vessel due today at Puerto Limon probably for the purpose of lending weight to note.

The note states that patience of British Government is exhausted; that Royal Bank claim shall not be submitted to Costa Rican courts; that unless Royal Bank claim is settled by direct action the British Government expects it and the Amory claim to be submitted to [Page 667] arbitration at an early date, and that the choice of Chief Justice Taft as arbitrator is agreeable.

Direct settlement of the Royal Bank claim is provided for in the contract of the loan offered by that institution to the Costa Rican Government which is now being studied by Congress, called to extra session for that purpose. It is possible that British Minister’s note is designed to bring pressure upon Congress and thus secure through acceptance of loan settlement of claim. The Minister for Foreign Affairs believes Congress will reject loan agreement and thus bring about difficult situation, for Congress insists Royal Bank claim must be submitted to courts while British Government insists on arbitration.