314.115C43/169: Telegram

The Secretary of State to the Minister in Guatemala (Geissler)

54. Your despatch 2572, September 21. If Guatemalan Government objects to statement of question in Shufeldt arbitration contained in Department’s telegram of October 1, you may say that the Department has no desire or intention to formulate the question in such a way that it will involve an acknowledgment of liability by the Government of Guatemala, which question is to be determined by the arbitrator. The Department is willing to accept the formula proposed by the Government of Guatemala with the following changes:

(1)
Change the first four lines to read as follows: “Is the Government of the United States, in behalf of P. W. Shufeldt, a citizen of the United States, justly entitled to receive from the Government of Guatemala indemnification for damages and injuries sustained by Shufeldt as a result of the action of the Guatemalan Government in enacting legislative decree No. 1544 of July 4, 1928, declaring ‘disapproved’ a contract of the fourth of February, 1922, entered into,” etc.;
(2)
In the second paragraph, substitute “the United States” for “Shufeldt”, and strike out the words, “and how is it to be paid?” The Department considers that this is not a proper question for decision by the Arbitrator, but is one to be decided in advance directly by the two Governments. See Paragraph XI of proposed note quoted in Department’s instruction of August 28.

Stimson