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SANITATION OF GUAYAQUIL; DISCRIMINATION AGAINST AMERICAN BIDDERS; AWARD OF CONTRACT TO A LONDON COMPANY.1

File No. 822.124/272.

The American Chargé d'Affaires to the Secretary of State.
No. 174.]
AMERICAN LEGATION,

Quito, January 6, 1913. SIR: I have the honor to report that Colonel W. C. Gorgas and the other members of the American Sanitary Commission, having completed their work in Ecuador, sailed for Panama on the steamer leaving Guayaquil December 24, 1912.

I have [etc.]

RUTHERFORD BINGHAM.

File No. 822.124/276.

The Secretary of War to the Secretary of State.

WAR DEPARTMENT, Washington, March 1, 1913.

MY DEAR MR. SECRETARY: I have the honor to transmit to you herewith the report of Colonel W. C. Gorgas2 in regard to sanitary conditions at Guayaquil, Ecuador.

Very sincerely yours,

[Inclosure-Summary.3]

HENRY L. STIMSON.

SUMMARY OF COLONEL GORGAS' REPORT REGARDING THE SANITATION OF GUAYAQUIL,

Colonel William C. Gorgas, accompanied by a sanitary commission of three other members consisting of Major Noble, and Messrs. Prince and McGuigan, was in Ecuador from December 8th to 24th, 1912, for the purpose of studying the sanitary conditions in that city and reporting what measures would be necessary to eliminate yellow fever and bubonic plague from that port, together with an estimate of the cost. Colonel Gorgas stated in his report that it was the opinion of the commission that Guayaquil could be freed from these two diseases and also from a great deal of the typhoid and intestinal diseases there prevalent at a cost of about $9,200,000, gold. The measures necessary to attain this end are as follows:

1. Appointment of a suitably qualified health officer to have control of all matters of health in the Republic, including particularly the sanitary police of the city of Guayaquil. It is essential that this officer have the cooperation of all the other authorities in the country, otherwise his work will be greatly hampered and he would partially fail, as happened to Dr. Lloyd in 1909.

2. Providing a suitable and sufficient water supply for the city, which will permit the removal of all cisterns and tanks, which are the breeding-places of the stegomya yellow-fever mosquito. At the present time the water supply is so limited that it is only turned into the mains for four hours out of the twentyfour.

3. A complete system of paving and sewerage, primarily intended to eliminate pools of water which might form breeding places for mosquitos. This would entail a proper system of garbage collection, which would be under the direct supervision of the health officer above mentioned.

Continued from For. Rel. 1912, pp. 422-434.

? The report is dated at Ancon, Canal Zone, January 9, 1913.

This summary was made in the Division of Latin-American Affairs, Department of State, Nov. 11, 1913. (File No. 822.124/276.)

4. Building the plague-carrying rats out of existence by putting in cement floors and sills in all the buildings, doing away with the present system of double walls and eliminating the gutters, etc., from the roofs of the houses.

The above measures should be carried out gradually, and Colonel Gorgas estimates that several years will be necessary to effectively sanitate the city. About $150,000, gold, annually will pay the expenses of the expert employees needed during this period.

Colonel Gorgas further considers that the sanitary organization as at present existing in Guayaquil can be utilized, and changes made gradually therein as occasion therefor may arise.

File No. 822.124/279.

The Secretary of State to the American Chargé d'Affaires. No. 69.]

DEPARTMENT OF STATE,

Washington, April 5, 1913. SIR: The Department encloses herewith, in duplicate, a letter dated March 18, 1913, addressed to the President of the Republic of Ecuador by Colonel W. C. Gorgas, U. S. Army, enclosing accounts in detail covering the expenditure of certain funds furnished by the Ecuadorean Government for the purpose of making sanitary surveys at the port of Guayaquil. The accounts referred to by Colonel Gorgas in this letter are also transmitted herewith in duplicate, together with his check No. AA 678524 on El Banco Comercial y Agrícola, Guayaquil, for the unexpended balance of S/9298.90 in favor of the Treas urer General of the Republic of Ecuador.

You are directed to present these accounts and Colonel Gorgas' check in person to the President of Ecuador. The Department has expressed to the War Department its gratification at the manner in which Colonel Gorgas has fulfilled his mission, and at the fact that he expended less than half of the amount of money set aside by the Government of Ecuador for this purpose.

In presenting the check and accounts to the President you may, in your discretion, say that you believe it would have a most favorable effect upon relations between the United States and Ecuador if he would make publie the object of your visit and the fact that Colonel Gorgas had returned more than half of the money placed to his credit by the Government of Ecuador.

I am [etc.]

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Colonel W. C. Gorgas, U. S. A., to the President of Ecuador.

ISTHMIAN CANAL COMMISSION,
Ancon, C. Z., March 18, 1913.

SIR: I herewith enclose accounts in detail covering the expenditure of certain funds furnished by the Ecuadorean Government for the purpose of making certain sanitary surveys at the port of Guayaquil, Ecuador.

The sum turned over to me by the Government of Ecuador was sixteen thousand eight hundred seven and fifty-hundredths sucres (S/16.807.50). Of this sum I expended seven thousand five hundred eight and sixty-hundredths sucres (S/7508.60), which expenditures are covered by enclosed vouchers, leaving a

balance of nine thousand two hundred ninety-eight and ninety-hundredths sucres (S/9298.90).

I enclose check No. 678524 on the Banco Comercial y Agrícola, Guayaquil, where the money was originally deposited, for the balance of S/9298.90, in favor of the Treasurer General of the Republic of Ecuador.

Very respectfully,

W. C. GORGAS.

File No. 822.124/283.

The American Minister to the Secretary of State.

[Telegram-Paraphrase.]

AMERICAN LEGATION,
Quito, May 24, 1913.

A crisis is approaching in the foreign loan negotiations and attending contracts for the sanitation of Guayaquil, which will not be awarded by competition but in a manner to best subserve local polities. Foreign firms are actively endeavoring to furnish loan and obtain contracts, as well as at least one American. It is practically certain that no American can hope for success, unless strong representations be speedily made to the effect that giving this matter to any but an American firm will be considered by the Government of the United States as unfriendly. America is known to be the most advanced nation in tropical sanitation, and the American firm competing has secured the refusal of Colonel Gorgas's services as adviser. I beg to be instructed to urge this matter upon the Ecuadorean Government.

SCHUYLER.

File No. 822.124/283.

The Secretary of State to the American Minister

[Telegram-Paraphrase.]

DEPARTMENT OF STATE,
Washington, June 26, 1913.

Americans should not be excluded from work of sanitation, especially after Ecuador invited the Isthmian Canal Commission to make report on the work which Colonel Gorgas made. Use your best efforts to secure for Americans opportunity to obtain contract. Give names of American firms bidding.

BRYAN.

File No. 822.124/292.

The American Minister to the Secretary of State.

[Telegram-Paraphrase.]

AMERICAN LEGATION,

Quito, July 1, 1913.

Americans will be given opportunity to obtain Guayaquil contract. Only American firm now competing is MacArthur Bros., New York.

Government desires firm to take bonds at a prearranged price, but firm wishes to sell bonds in open market and credit proceeds without previously fixing price.

SCHUYLER.

File No. 822.124/302.

No. 15.]

The American Minister to the Secretary of State.

AMERICAN LEGATION,

Quito, July 19, 1913.

SIR: Referring to recent telegrams exchanged between the Legation and the Department concerning the contract for the sanitation of Guayaquil, I have the honor to inclose copies and translations of a letter written by the president of the committee in Guayaquil having charge of the awarding of the contract.

In view of the extraordinary wording of this letter, I have brought it to the attention of the President and the Minister for Foreign Affairs with the statement that it would, if allowed to pass without protest, constitute a serious discrimination against the American firm interested in obtaining the contract, which discrimination I was sure was far from being the desire of the Ecuadorean Government.

The Minister for Foreign Affairs informed me yesterday that the Government had telegraphed to Guayaquil to inquire into this matter and that he could assure me that no discrimination whatever was intended against American interests. He also stated that the President of the Republic had decided to leave the matter of the awarding of the contract entirely in the hands of the Guayaquil committee, but that he personally thought that it would be unlikely that the committee would itself decide so important a matter without referring it to the Congress, which is to meet on August 10.

I may add that there is great anti-American feeling in Guayaquil and that efforts will certainly be made by the interests there to defeat the awarding of any important contract to American interests unless the Government of the United States takes a very firm and active position in the case.

I know of no other American firm at present except MacArthur Bros., of New York, which is trying to obtain the contract. I have [etc.]

MONTGOMERY SCHUYLER, JR.

[Inclosure-Translation.]

Mr. Illingworth to Mr. Brooks.

PRESIDENCY OF THE

COMMITTEE ON SEWERAGE AND WATER SUPPLY,

Guayaquil, July 11, 1913.

In the session of this date I have brought to the attention of the committee over which I preside the proposal which you, in the name of MacArthur Bros., of New York, sent me dated June 19. The committee directs me to tell you that as it is treating with other European firms, which before you have spoken of contracts for the sanitation of this city, it is not possible for the moment to

consider your proposal. However, if no definite arrangement is concluded with the other firms, it would have much pleasure in taking into consideration your proposal, in which event you will be duly communicated with.

Yours, etc.,

JUAN ILLINGWORTH,

President of the United Committees of Sewerage and Water Supply.

File No. 822.124/299.

The American Minister to the Secretary of State.

[Telegram-Paraphrase.]

AMERICAN LEGATION,

Quito, July 31, 1913.

The Congress, which opens August 10, will probably award Guayaquil contract. It might be well for the Department to find out if MacArthur Bros. are in earnest. If so a representative should be sent immediately or the local representative be given full powers to negotiate and sign contract. This firm is the only entirely American house interested.

SCHUYLER.

File No. 822.124/301.

The American Minister to the Secretary of State.

[Telegram-Extract.]

AMERICAN LEGATION.
Quito, August 6, 1913.

I learn from a reliable source that MacArthur bid, which is on a commission basis, is the most acceptable received, but is not being considered, as firm is American. The majority of the people of Guayaquil do not want any sanitation, which they believe would open the door to foreign trade competition.

File No. 822.124/302.

SCHUYLER,

The Secretary of State to the American Minister.

[Telegram-Paraphrase.]

DEPARTMENT OF STATE,
Washington, August 14, 1913.

Your action, reported in your despatch No. 15, of July 19, in bringing Illingworth's letter to the attention of President Plaza, is approved.

The Department understands from the Minister of Ecuador that the matter of awarding the contract has been taken out of the hands of the Guayaquil committee and the Congress called on to decide whether the President or a new and smaller committee shall have that authority. The Minister's opinion is that an award will not be made for three months. Telegraph whether the Minister's statements are accurate and do all in your power to procure consideration for proposal of MacArthur's or of any other Americans who may bid.

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