422.11 G 93/1261: Telegram

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

6. Your No. 4, of February 17.

You will please present this matter again to the attention of the President of Ecuador and state that, while this Government recognizes the general rule that controversies between American citizens and foreign governments should be settled in the courts, where they have jurisdiction, the Government of Ecuador, of its own free will, agreed in its contract with the Guayaquil and Quito Railway Company, that controversies between it and the Company should be settled by arbitration. By this agreement arbitral settlement was substituted for ordinary judicial settlement. Therefore, it is hoped that the Ecuadorean Government will see fit to withdraw the suit which it has brought against the Railway Company.