422.11 G 93/1265: Telegram

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

9. Your 5, March 23.

Inform President that action of the Government of Ecuador in maintaining in force suit against Railway Company brought in clear violation of the broad provision for arbitration of difficulties contained [Page 930] in Article 27 of the contract of June 14, 1897, confirmed by the Act of Congress of Ecuador of November 1, 1908, and evidently relating to all controversies concerning the subject matter of the contract, namely, the building of the railroad, compels this Government to state that it cannot admit that the action taken by the Government of Ecuador sets a precedent for the future, and must reserve all rights in case of adverse decision.