822.72 AL 5/59
The Minister in Ecuador (Long) to the Secretary of State
[Received May 25.]
Sir: In continuation of despatch No. 19 of May 16th,58 I have the honor to report that Mr. John K. Roosevelt informed the Legation yesterday morning that, on Tuesday the 17th inst., practical agreement was reached on all points, recently under discussion, looking to the conclusion of an agreement for continuing the contract of the Cable Company for approximately eighteen years; that is, the period remaining of the fifty years granted under the Alfaro concession long ago.
The Supreme Chief thereupon approved the issuance of a decree authorizing the Minister of Public Works and Communications to incorporate the terms of the agreement in a public document which when signed by the representatives of the Company and Government will be completely legal without ratification by a subsequent congress. That is his opinion and the Company accepts it—at least for the time being.
This document was signed today. A copy with translation will be forwarded immediately when the official publication has become available.59
Meanwhile, as we understand it the outstanding points of the new arrangement are: cancellation of free entry privileges, payment by [Page 560] the Company of a sales tax, of an income tax, also $20,000 annually as a tax on international traffic, and a tax of .10ȼ per word on incoming messages not counting Ecuadorean Government, consular and press messages.
The Company will return title to the Government of Ecuador on the lands it formerly held near Salinas so they may be allocated to the Municipality of the same name: in addition the Company will open an office at Quito, and within three years will establish another office at Manta. A cash payment is also to be made.
While the above synopsis may not be all inclusive it is thought to embody the principal changes which have been arranged. It is thought that the Ecuadorean Government is content.
. . . . . . . . . . . . . .
Respectfully yours,