823.73 All America Cable Co/31: Telegram
The Secretary of State to the Chargé in Peru ( Sterling )42
12. [The first two paragraphs have been omitted since they are identical with those of telegram number 3, February 4, to the Chargé in Argentina, supra.]
On January 30th the following resolution was passed by the Board of Directors of the All America Cables, Incorporated:
“Whereas, the All America Cables, Incorporated, enjoys or claims certain preferential or exclusive rights of entry, connection, or operation of submarine cables in Colombia, Ecuador, and Peru; Whereas, the Western Telegraph Company, Limited, enjoys or claims certain preferential or exclusive rights of entry, connection, or operation of submarine cables in the Argentine Republic, Brazil and Uruguay; Whereas, it has been arranged that the All America Cables, Incorporated, and the Western Telegraph Company, Limited, shall renounce all such preferential or exclusive rights; now, therefore, [Page 522] be it resolved that the All America Cables, Incorporated, agrees to renounce, waive, relinquish and surrender, in favor of American and British cable companies only, any preferential or exclusive rights of entry, connection, or operation of submarine cables now enjoyed or claimed by it in Colombia, Ecuador and Peru, or elsewhere in South America. However, the All America Cables, Incorporated, does not give up its rights of entry, connection or operation of submarine cables, but gives up only the preferential or exclusive features of such rights in favor of American and British cable companies. Provided, that this renunciation, waiver, relinquishment, and surrender shall become effective upon the presentation to the Department of State of the United States, in behalf of Western Telegraph Company, Limited, of the corresponding resolution, renouncing, waiving and surrendering any exclusive rights of a similar character which it enjoys or claims in the Argentine Republic, Brazil and Uruguay, or elsewhere in South America, and upon the acquiescence in the renunciation, waiver, relinquishment and surrender of the All America Cables, Incorporated, by the Governments of Colombia, Ecuador and Peru, and the acquiescence in the renunciation, waiver, relinquishment and surrender of the Western Telegraph Company, Limited, of the Governments of the Argentine Republic, Brazil and Uruguay.
And be it further resolved, that a copy of this resolution shall be transmitted to the Department of State at Washington and to the Governments of Colombia, Ecuador and Peru.”
A corresponding resolution mutatis mutandis was passed by the Western Telegraph Company, Limited, on January 25th. The resolutions were examined by the representatives of the Western Union, acting for the Western Company, and of the All Americas, in the Department on January 31st, and February 7th was fixed for the presentation of the resolutions to the South American Governments concerned.
The resolution of January 30th will be presented to the Peruvian Government by the representative of the All America Company on the 7th, or as soon as possible thereafter. You are requested to keep the Department promptly informed and telegraph the text of the formal concurrence of Peru as soon as it is received by you.
The Department hopes that this solution of the controversy will commend itself to the Peruvian Government. It is believed that in removing restrictive monopolies the door will be opened to free and healthy competition and to the establishment of additional cable facilities between North and South America and between the countries of South America, reduction of rates, closer business relations, increased press traffic, and freer exchange of ideas and bring closer together the peoples of the Western Hemisphere.
In waiving the exclusive or preferential features of its rights of entry, connection, or operation of submarine cables in Peru, the All Americas does not surrender the non-exclusive features of such [Page 523] rights. You should, therefore, satisfy yourself that the acquiescence of the Peruvian Government will not adversely effect [affect] the interest of the All America Company in this respect. You will readily understand that the Department’s effort throughout has been to eliminate the monopolies enjoyed by the British Company so as to permit American cable companies to extend their existing systems in South America.
- The same, mutatis mutandis, to Colombia as no. 7 and to Ecuador as no. 1 (file nos. 821.73/26a, 822.73/1a).↩