822.61334/60
The Secretary of State to
the Minister in Ecuador (Hartman)
Washington, December 5,
1921.
No. 296
Sir: There is transmitted herewith for your
information a copy of a letter, dated November 29, 1921, from the
Mercantile Bank of the Americas, apprising the Department of an
understanding reached between the President of Ecuador and the
representative of the bank, with respect to the intentions of the
Government of Ecuador in connection with the claims of the bank against
the Asociacion de Agricultores.44
In your discretion, you will endeavor to verify these statements as a
matter of record, and advise the Department.
I am [etc.]
For the Secretary of State:
F. M.
Dearing
[Enclosure]
The Mercantile Bank of the
Americas, Inc., to the Secretary of
State
New
York, November 29,
1921.
Sir: We have received further cables from
our representative in Ecuador, Mr. Lindberg, advising us that in
response to his request for a reconsideration of the decree
allocating to us only one-third of the 66 per cent, of the proceeds
of the Three Sucre Per Quintal Export Tax on cocoa prescribed by the
recent law for the payment of the Asociation’s debts, the President
of the Republic has now agreed that there shall be allocated to us,
in addition to said one-third, or 22 per cent, of the whole tax,
whatever surplus there may be out of the 34 per cent, of such tax
alloted by the law for the general administrative and budgetary
expenses of the Asociation, after defraying such expenses.
In securing this reconsideration the good offices of the American
Minister in Ecuador were of the utmost value and we again desire to
express our appreciation.
[Page 902]
According to the calculations cabled to us by Mr. Lindberg, it is
probable there will be a considerable surplus available out of such
34 per cent, and applicable to the reduction of the indebtedness
owing to this bank.
While the amounts so to be received by us still will not give us the
pro rata with other creditors which we deem we are entitled to
receive and for which we asked, nevertheless, we recognize the
practical political difficulties against which the President of the
Republic has had to contend. Accordingly, Mr. Lindberg, we
understand, expressed his conformity with the President’s latest
decision, and we have acquiesed, but only on the express conditions,
to which the President agreed, and which we desire to place formally
on record with you, namely:
- First: that the three sucre export tax on cocoa shall be
extended, beyond its present expiry date, 1925, if necessary
to fully liquidate the balance of the indebtedness due to
us;
- Second: that there shall be allocated to us, as above
stated, any surplus out of the aforesaid 34 per cent, of the
tax over and above the administrative etc. expenses of the
Asociation in addition of course to the 22 per cent, of the
tax originally allocated to us;
- Third: that in case the Government obtains a foreign loan
onehalf of the indebtedness now due us by the Asociacion
shall forthwith be paid to us out of the proceeds of such
loan.
Again thanking you [etc.]
Mercantile Bank of the Americas,
Inc.By
P. J.
Eder
,
Vice-President
