File No. 822.00/378. Minister Hartman to the Secretary of State. [Telegrams.]. AMERICAN LEGATION, Quito, April 16, 1914, 2 p. m. I am reliably informed that on April 14, 400 revolutionists captured Ibarra. It is believed by Government officers that the revolutionists will be greatly reenforced by sympathizers between Quito and Ibarra. So much concern is felt among the Government officers regarding the situation that I have been requested by a representative of Mrs. Plaza to receive three of the sons of the President at the Legation in the event of the revolutionists succeeding at Ibarra and marching against Quito. I have promised to receive the refugees and have preparations nearly ready. File No. 822.00/383. HARTMAN. AMERICAN LEGATION, Quito, June 2, 1914, 1 p. m. The American Consul General at Guayaquil telegraphed this morning that our consular agent at Esmeraldas reports that that city is practically besieged by the revolutionists and that the situation is becoming difficult. File No. 822.00/386. HARTMAN. AMERICAN LEGATION, Quito, August 14, 1914, 11 a. m. Owing to revolutionary conditions Congress has granted extraordinary powers to the President. File No. 822.00/387. HARTMAN. AMERICAN LEGATION, Quito, August 22, 1914, 3 p.m. I believe that conditions in Ecuador now are such as warrant my asking authority of the Department to undertake negotiations looking toward the ending of the revolution. I do not know whether either the Government or Concha, the chief of the revolution, will consent to such negotiations but both sides are short of money and the people are sick of war. I realize that many difficulties will be encountered and that it is doubtful whether the efforts will succeed; but I regard the matter of such importance that I am willing to assume the additional work and responsibility and take chances on the results. Please answer by telegraph. HARTMAN. File No. 822.00/387. The Secretary of State to Minister Hartman. [Telegram.] DEPARTMENT OF STATE, Washington, August 25, 1914, 4 p. m. Your August 22, 3 p. m. The Department does not consider it advisable or prudent for the Government of the United States to mix in any way in the internal, political affairs of Ecuador. BRYAN. CLAIMS OF THE GUAYAQUIL & QUITO RAILWAY COMPANY AGAINST ECUADOR-ARBITRATION PROCEEDINGS. PROTEST OF THE RAILWAY COMPANY IN RELATION TO THE J. G. WHITE CONTRACT.' File No. 422.11G93/713a. The Secretary of State to the American Arbitrator, the Honorable A. L. Miller. 3 DEPARTMENT OF STATE, Washington, November 28, 1913. SIR: Referring to the certified copies of correspondence with which you have been furnished in relation to your mission as Arbitrator in the arbitration between the Government of Ecuador and the Guayaquil and Quito Railway Company, I beg leave particularly to advert to the note of the Ecuadorian Minister at Washington of the 8th of August last in which it is stated that, the Arbitrators having been named, they need only present themselves at Quito and take possession of their offices before the proper Ecuadorian judge; that by so doing they will become an arbitral tribunal independent of every authority or court of Ecuador or of the United States; and that, being amiables compositeurs, they are not obligated to apply the laws of any nation to reach a decision but must be inspired solely by the dictates of justice and equity according to their conscience and best knowledge and judgment, taking as their bases the antecedents of the case. In taking possession of their office before the proper Ecuadorian judge, as the Minister's note indicates, it is supposed that the Arbitrators will be required to make or sign a declaration or oath. If this be so, it is assumed that the oath will in substance provide, substantially in the language of the Minister's note, that they are to be governed by the dictates of justice and equity according to their conscience and best knowledge and judgment, taking as the basis of their action the antecedents of the case. The Department also deems it proper to call particular attention to the telegraphic note of the Minister of Ecuador of the 28th of Octo Continued from For. Rel. 1913, pp. 473–504. See also, supra, the message of President 'Id. 495. Plaza. 4 ber in which, referring to the phrase "juicio final" in his note of the 8th of August, he states that this phrase means an unappealable judgment, and that he had received from his Government a cablegram saying, "Congress empowers Executive to accept unappealable award." The Minister then observes that, every difficulty having been removed, it is hoped that you will be instructed immediately to proceed to Ecuador in the discharge of your duties. The Department, as you will observe, replied on the 30th of October acknowledging the Minister's communication and saying that you would be requested immediately to proceed to the discharge of your duties. I am [etc.] For the Secretary of State: File No. 422.11G93/723. J. B. MOORE, AMERICAN LEGATION, Arbitrators have failed absolutely to agree, and Judge Miller leaves for home February 4. File No. 422.11G93/737. HARTMAN. The Secretary of State to Minister Hartman. [Telegram.] DEPARTMENT OF STATE, Washington, February 7, 1914. Your February 1. Please cable briefly whether board of arbitration was organized, what steps were taken to reach an agreement, and the points of difference on which final disagreement occurred. BRYAN. File No. 422.11G93/738. Minister Hartman to the Secretary of State. [Telegram.] AMERICAN LEGATION, Answering your February 7. Arbitrators met in the room of the Chamber of Deputies, January 19, and took official oath They met • Id. 499. next day to consider and adopt rules of procedure, but did not agree. After this meeting, negotiations were carried on by exchange of notes. After eleven days, they finally disagreed upon the following points: The Ecuadorian Arbitrator insisted that the arbitration should be conducted under Ecuadorian law; that there should be but one secretary to the tribunal; that no person but a citizen of Ecuador could legally act as such secretary; that one of the secretaries of the Second Court is the only proper person to be such secretary; that the proceedings should be conducted, and official record kept, only in the Spanish language, and that the original record be filed in the courts here; that no time limit be fixed for receiving testimony; that the Arbitrators had no right to require by rule the parties to present their claims on penalty of their being barred. From all these contentions Judge Miller dissented. File No. 422.11G93/740. HARTMAN. The American Arbitrator to the Secretary of State. [Telegram.] LIMA, February 13, 1914. Organization proceeded no further than taking the oath. Negotiated for nearly three weeks in effort to reach satisfactory rules of procedure, I conceding every possible point that was not vital. Points of difference were: 1. I insisted that proceedings be conducted both in Spanish and English; Ecuador insisted that they be conducted in Spanish alone, and only one original record be kept. 2. I insisted that two secretaries be appointed, one by each Arbitrator, I naming Steer. They insisted that only one secretary could be appointed and that under Ecuadorian law he must be an Ecuadorian official; they further insisted that the secretary of the Ecuadorian court was by their arbitration law secretary of the arbitration tribunal until we selected some other Ecuadorian official as secretary. They also insisted that this one secretary should be sole custodian of all the papers and records of the tribunal, I contending for joint custody by the two secretaries named by us respectively. 3. They contended that arbitral tribunal could determine only such matters as parties saw fit to submit, while I insisted that parties should submit every matter in controversy up to date. 4. I contended that a definite time be fixed in advance in which evidence could be introduced, providing for extension of time if found necessary. They refused absolutely to fix any time. 5. They finally took the position that arbitral tribunal should adopt no rules whatever, as the matter was entirely controlled by Ecuadorian law of arbitration. This being a distinct violation of agreement made in Washington, I of course refused to agree. These vital differences necessarily made the arbitration impossible, and I formally notified Ecuadorian Arbitrator that I would notify the President of our disagreement. MILLER. For. Rel. 1913, pp. 502-504; also pp. 495-498. File No. 422.11G93/739. The Secretary of State to Minister Hartman. DEPARTMENT OF STATE, Washington, April 3, 1914. SIR: I enclose herewith a copy of a letter of Mr. T. H. Powers Farr, Vice President of the Guayaquil and Quito Railway Company, protesting in behalf of the company against any operation of the Ecuadorian Government's recent contract with Messrs. J. G. White and Company, Limited, which would infringe or encroach upon the first and preferential charge on the entire customs revenues, previously given by the Ecuadorian Government to the railway company as a guaranty for the payment of the principal, interest and sinking fund of the latter's bonds. The provisions therein quoted from the contract between the Government of Ecuador and Messrs. J. G. White and Company, Limited, purporting to assign or pledge to the latter certain percentages of the customs duties collected at Guayaquil, appear to be correct according to the translation of that contract forwarded by the Legation with its No. 30 of January 30, 1914, except that paragraph B of article 8 as cited by Mr. Farr should apparently be paragraph G. It also appears from the copy of the contract between the Government of Ecuador and the Guayaquil and Quito Railway Company which is in the Department's possession that Mr. Farr's statements as to the provisions of that contract relating to the guaranty by the Government of Ecuador of the bonds of the railway company are substantially correct, except that in such contract it is provided that the customs revenues of the Government are subject to certain prior liens for the payment of the Consolidated Debt and the active debt of the Government due to certain banks. In any event, it would appear, from the Department's information, that the lien upon such customs revenues for the guaranty of the railway company's bonds must be considered under the Government's contract with the company as superior to any lien on such revenues attempted to be imposed by the later contract with White and Company. If the Legation's information confirms the above statement of facts, you will bring to the attention of the Foreign Office the substance of the protest of the railway company as set forth in Mr. Farr's letter, and say that, as the company's representations appear to be well founded, the matter is brought to the notice of the Government of Ecuador only in a precautionary sense, for the purpose of reserving the company's rights and preventing future misunderstanding, it being assumed that the Ecuadorian Government does not contemplate the performance of the recent contract with White and Company in such a way as to infringe the guaranty previously given to the railway company. I am [etc.] For the Secretary of State: For. Rel. 1913, p. 519. |