422.11 G 93/1255: Telegram
The Secretary of State to the Minister in Ecuador (Bading)
1. Your despatch No. 12, July 11, 1922.5 Department is informed by the Guayaquil and Quito Railway Company that Government of Ecuador has started legal proceedings against the Company before a local Ecuadoran Judge to recover 600,000 sucres claimed to have been deposited with Archer Harman6 in 1909.
If this is the situation please inform the Ecuadoran Government that such action would appear to be contrary to provisions of the contract which call for settlement of all differences between the Company and the Government by arbitration and that the Department understands that the Company is willing to submit this matter to arbitration.