The Under Secretary of State ( Welles ) to the British Ambassador ( Lothian )

My Dear Mr. Ambassador: I wish to refer to your note of November 20 with regard to the proposal for arbitration of the Belize matter.

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Advices received from Guatemala convey the impression that the Guatemalan Government might be reluctant to proceed to arbitration unless the arbitral compromise include some provision for settlement of the fundamental issues involved in the event that it should be determined that there had not been compliance with Article VII of the 1859 Treaty. I think you will agree that such a provision would facilitate a satisfactory solution of the problem.

I should be grateful therefore if you could confirm my understanding that it is your Government’s intention that the arbitral tribunal be empowered to effect a settlement of all of the issues involved.

Believe me,

Yours very sincerely,

Sumner Welles