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  3. Foreign Relations of the United States Diplomatic Papers, 1938, The American Republics, Volume V
  4. Document 556

822.6341 South American Development Co./71

The Ecuadoran Ministry for Foreign Affairs to the American Legation in Ecuador44a

[Translation]

Memorandum

(In re note No. 11 of this date)

First of all it is necessary to inform the Chargé d’Affaires of the United States that Ecuador, following the doctrine generally accepted by all the countries of the world, and especially by those of America, does not recognize resort to diplomatic intervention. This intervention, in the present case, is, moreover, the less acceptable if we take into account the principles which govern the Republic, and the special terms with the South American Development Company.

Nevertheless, as a courtesy to the Chargé d’Affaires of the United States, the Ministry of Foreign Affairs, under instructions from the Supreme Chief, explains the following points:

(1)
That the Supreme Chief is conferring with Mr. Tweedy, who is meeting the shareholders in New York.
(2)
That in order to arrive at an equitable and direct understanding with the Company, the Government of Ecuador has granted the Company various extensions which, taken together, have delayed the termination of this affair for more than one month, a period sufficient to have reached a settlement, if there had been good will.
(3)
That the Government corrects the reprovable appreciation of the Chargé d’Affaires of the United States to the effect that the dispute with the Companies was induced by the financial necessities of the Government. The demands of the Government from foreign companies are due to just claims under law and the respective rights of the parties.

In conclusion, as the Chargé d’Affaires has been instructed by his Government to express to ours its earnest hope that it might be possible to grant an extension of the necessary time, in order surely to reach an understanding the Government of Ecuador, in view of the never forgotten friendship with the Government of the United States and in order to demonstrate its spirit of equanimity and justice, grants for the last time, a friendly extension of ten days, which will expire at midnight on the fifteenth instant.

Quito , February 5, 1938.
  1. Transmitted to the Department by the Chargé in Ecuador in despatch No. 1040, February 7; received February 15.↩