one-half per cent of the cost. This payment comprises the earnings of the contractors, and the value of their studies, plans, specifications, reports, and estimates of the works, the direction, inspection and control in their fulfillment, the commission on the purchase of materials as per conditions stipulated, the expenses preliminary to their shipment to Ecuador, arrangement for the marine insurance, expenses of the works that ought to be prepared by the contractors, and everything in general relating to them as stipulated in this contract, without entering into the cost of the work as contained in article 18.

The contractors affirm that the house of J. G. White and Company, Limited, of 9 Cloak Lane, established in London the 10th of July, 1900, under the laws of England, has its independent representation, as per copy of its constitution, and therefore is the only one that assumes, as contractors, the rights, privileges and obligations of the present contract, and shall not be permitted, now or in the future, to transfer the contract for any motive or under any pretext to any other society, person, principal office or dependencies, established or to be established in any other country with the same or any other name; therefore the rights and obligations of this contract refer only and exclusively to the mentioned house of J. G. White and Company, Limited, London, England, and the Government of Ecuador. The engineers and other employees may be of any nationality in agreement with the Government,

The Government declares, in turn, that this contract is contained in the foregoing text, and therefore it is agreed by both parts that the contract will be without effect, and without any claim on all agreed upon, in case the contractor fail on any of the points of the foregoing statement. For the fulfillment of this contract and their relations with the Government, the contractors will have their offices in Ecuador.

The agreement will be published immediately the contractors show their incorporation papers, which shall be inserted in conformity with the Código de Enjuiciamentos en Materia Civil; that is, that the public document or instrument by which J. G. White and Company was organized in the market of London, 9 Cloak Lane, as principal office, and independent of any other, and the legal power of attorney authorizing Mr. J. W. Mc. sky [sic] to subscribe the contrace and bind the company to all agreed upon.

For the fulfillment of this contract, the contractors will make their domicile in Guayaquil, where they will locate their legal representative, and submit to the jurisdiction of the judges of the Republic of Ecuador and to its laws.

They declare having full knowledge of the 23rd article of the Political Constitution of the Republic of Ecuador, which says: "Every contract which a foreigner or a foreign company celebrates with the Government, or private person, shall carry the condition of renouncing all diplomatic claims."

I have [etc.]

FREDERIC W. GODING.

File No. 822.124/322.

The American Minister to the Secretary of State.

[Telegram-Paraphrase.]

AMERICAN LEGATION,

Quito, December 14, 1913.

A contract was signed today in Quito between the Government of Ecuador and James W. McCrosky [sic] representing J. G. White and Company, Limited, of London, for the sanitation works of Guayaquil; the amount involved is about $10,000,000.

HARTMAN.

SLAVERY OF INDIANS IN THE PROVINCE OF ORIENTE. File No. 822.5048.

The Acting Secretary of State to the American Minister. No. 3.] DEPARTMENT OF STATE, Washington, July 21, 1913. SIR: The Department encloses herewith a copy of a note dated July 5, 1913, from the British Embassy, with reference to a despatch dated May 14, 1913, a copy of which is also enclosed,' from the British representative at Quito regarding labor conditions in certain parts of Ecuador.

You are instructed to forward all information obtainable at Quito as to the condition of the indigenes in the Ecuadorean Province of Oriente, and to furnish your views as to the advisability of the United States joining with Great Britain in the friendly invitation to the Ecuadorean Government alluded to in the note from the British Embassy.

SIR: I have the honour to refer to Mr. Huntington Wilson's note to my predecessor, No. 1714 of December 26th last, in which it is stated, in answer to enquiries on the subject on the part of His Majesty's Government that the United States Government would be prepared, in specific cases of the maltreatment of South American natives, to use its influence with the Government concerned to ensure steps being taken to better the condition of the native inhabitants.

In this connection I have now the honour, under instruction from my Government, to bring to your notice unofficially the enclosed copy of a despatch from His Majesty's Chargé d'Affaires at Quito and to enquire whether, in view of the above-mentioned note, the United States Government would be disposed to join with His Majesty' Government in a friendly invitation to the Ecuadorean Government thoroughly to investigate the circumstances and, should a traffic in slaves between Ecuador and Peru be found to exist, to cooperate with the l'eruvian Government in suppressing it.

I have [etc.]

File No. 822.5048.

The Acting Secretary of State to the British Amabassador.
No. 85.]
DEPARTMENT OF STATE,

Washington, July 21, 1913. EXCELLENCY: I have the honor to acknowledge the receipt of your excellency's note of July 5, 1913, enclosing a copy of a despatch from the British Chargé d'Affaires at Quito on the subject of labor conditions in the Ecuadorean Province of Oriente, and asking for the views of this Government as to the disposition of the United States to join with your Government in a friendly invitation to that of Ecuador thoroughly to investigate the circumstances, and, should a traffic in slaves between Ecuador and Peru be found to exist, to cooperate with the Peruvian Government in its suppression.

The Department has not received any reports of ill treatment of the indigenes in Ecuador and hesitates to believe that their condition. is such as to require assistance from this Government.

A copy of your note has been transmitted to the Legation of Quito with instructions to report on the subject.

I have [etc.]

File No. 822.5048/2.

No. 25.]

J. B. MOORE.

The American Minister to the Secretary of State.

AMERICAN LEGATION,

Quito, August 30, 1913. SIR: In reply to the Department's instruction No. 3, of July 21st, I regret to say that there is no further information available here regarding the subject of labor conditions in the Oriente of Ecuador, than that supplied the Department in the despatch from the British Chargé d'Affaires in this city to his Government, which was transmitted to the Department by the British Embassy.

It is known here in a general way and regretted that the condition of the Indians practically throughout Ecuador is very bad and that they are living in a practical state of slavery or peonage on the large estates of the rich Ecuadoreans. While this would be difficult to prove in any satisfactory way, the fact exists and is condoned by all concerned as a necessary evil. The usual method of procedure is to have some sort of store at which the "employees" of a ranch or farm are expected to do their trading and in which their needs. are supplied at "special" prices. The object, of course, is to get them into a state of indebtedness to the proprietor and keep them there so that their wages are never quite enough to pay their “debts' and consequently they are practically unable to leave for some other employment as there is an understanding among the owners as to taking peons from other properties. Conditions in the Oriente are believed to be still worse than in the more civilized portions of the country on account of the distance from the central government and the bad character of a majority of the small officials in that region. Ir. many places there are no officials of any kind and there are large tracts of what is really a savage territory, of which the sovereignty is claimed both by Ecuador and by several other countries.

I believe that the central government is sincerely anxious to do what it can for these unfortunate beings, and latterly, the "Junta de Beneficencia" has resolved to appoint a commission to look into the matter of relieving them from what is termed the "savage tyranny" of the proprietors.

As a humanitarian measure, the United States Government could very properly join with Great Britain in a friendly invitation to the Ecuadorean Government, as suggested by the British Government, looking towards the suppression of a slave traffic, but I am extremely doubtful as to the practical results which such a proceeding would have. Undoubtedly the Government of Ecuador would be, in principle, favorable to the suppression of such traffic and to the amelioration of the condition of the natives, but the practical execution of any projects of that kind would be most difficult. It must always be remembered that the Oriente of Ecuador when taken in connection with the similar regions in Peru, Colombia, Brazil and Venezuela, forms an enormous extent of wild territory over which there is only a very uncertain sovereignty and almost no attempt at enforcing any kind of laws. The population or rather settlers which such a region attracts are naturally not of a kind to be over sensitive to sufferings of the natives and the officials, even if their intentions. were of the best, would be unable to offer any substantial relief. Conditions in the Oriente are probably much like what they were in the Kongo before investigation had brought to light the illegal and inhuman happenings which were being carried on there.

I regret that the British Chargé d'Affaires in this city is out of town at present for his health so that I cannot consult with him in this matter and under the circumstances I have thought it better not to ask for information from Ecuadorean sources of an official nature. I have [etc.]

MONTGOMERY SCHUYLER, JR.

File No. 822.5048/1.

No. 10.]

The Secretary of State to the American Minister.

DEPARTMENT OF STATE, Washington, September 8, 1913.

SIR: The Department encloses herewith, for your information, a copy of a personal note from the British Ambassador relating to the alleged traffic at Iquitos in slaves from the Napo river region of Ecuador.

Dublin, N. H., August 12, 1913. DEAR MR. SECRETARY: Sir E. Grey desires me to bring to your notice the following information which has just reached him in regard to the alleged traffic

at Iquitos of slaves from the Napo region of Ecuador. You will recollect that a note on this subject was addressed to me by Mr. Moore (No. 85) on July 21.

A copy of the despatch from His Majesty's Chargé d'Affaires at Quito, which was forwarded to you in my note No. 183 of July 5th, was also sent to the British Consul at Iquitos, who was instructed to furnish a report on the subject. The Consul has now replied that, as stated by Mr. Jerome, some rubber hunters, mostly not Peruvians and working independently, have brought about four hundred Indians through Iquitos during the last two years. In the Consul's opinion these Indians are slaves inasmuch as they are practically the absolute property of the rubber hunters; but they are not necessarily ill-treated or unhappy. They are not sold to others but accompany their owners. There is now on the lower Napo a party of one hundred to one hundred and fifty Indians, owned by an Italian born in Ecuador, which is expected to arrive at Iquitos about October. Our Consul thinks that it should be possible to enforce regulations for the prevention of such traffic, as all these parties pass through Iquitos. I venture to suggest that this information may be of use to the United States Legation at Quito in connection with the report you have called for on the subject.

I am [etc.]

CECIL SPRING-RICE.

File No. 822.5048/2.

No. 1.]

The Secretary of State to the American Minister.

DEPARTMENT OF STATE, Washington, September 29, 1913.

SIR: In acknowledging the receipt of Mr. Schuyler's No. 25 of August 30 regarding the subject of labor conditions in the Oriente of Ecuador, the Department desires to say that it wishes you to confer with the British Chargé d'Affaires at Quito, and to continue to keep it fully informed concerning the matter.

I am [etc.]

For the Secretary of State:

J. B. MOORE.

File No. 822.5048/5.

No. 13.]

The American Minister to the Secretary of State.

AMERICAN LEGATION,

Quito, November 13, 1913.

SIR: Adverting to the Department's instructions No. 3 and 10, addressed to my predecessor and No. 1 addressed to myself, I now have the honor to report with respect to recent developments concerning the alleged traffic in slaves in the upper Napo region lying within the territory of Ecuador.

Mr. Lucien J. Jerome the British Chargé d'Affaires has confidentially placed at the disposal of this Legation the document referred to by the British Ambassador in his communications of July 5th and August 12th, and also the latest report received from Victor Huckin, Esquire, H. B. M's Consul in Iquitos, who under the date of August 8 has addressed the Foreign Office, as follows:

The principal fact which I have ascertained is that bodies of Indians have on several occasions within the past two years been brought down from the Napo to Iquitos and sent on thence to the