company's addressing some communication to the Argentine Government as an earnest of their intention to avail themselves of the concession of 1885. Such a communication might merely touch upon the matter of facilities for a cable landing here, or any preliminary convenient to the company's intention, but would probably have a favorable effect on the Argentine Government's view of the company's position. Having stated that action on its part awaited a decision of the courts in Rio de Janeiro, now handed down, it would seem fitting that the telegraph company should move with little delay. I have [etc.] F. STIMSON File No. 835.73/72 The Vice President of the Central & South American Telegraph Co. (John L. Merrill) to the Secretary of State NEW YORK, March 23, 1918. SIR: I respectfully ask that you will refer to the Department's letter of October 3, 1916, and previous correspondence and, particularly, to the paraphrase of a telegram which the Department was good enough to send to the American Embassy at Buenos Aires, on September 28, 1916, reading 2 For your convenience, I quote below a translation of a concession granted to the Central & South American Telegraph Co. by the Argentine Government in 1885. This concession, you will note, was granted absolutely without limitation as to time. The concession, translated, reads Please note that while our concession from the Argentine Republic, dated June 22, 1885, is very brief, it contains a reference to the national telegraph law of October 7, 1875, which law embraces a full statement of the regulations under which the business of our company in the Republic of Argentina, over the proposed cables, will be carried on. This law, among other things, gives the Executive the power to permit the landing of ocean cables. Acting upon the suggestion of the American Ambassador to Argentina, the company made formal application to the Argentine Government for landing site in Argentina on March 8, 1917. The following is a translation of such application: TO THE DIRECTOR GENERAL OF TELEGRAPHS, BUENOS AIRES : The difficulties offered in the Republic of Brazil to the laying of the cable authorized by decree of July 22, 1885, which this company has been able to overcome since that time by the use of all its efforts with persistent application, as it has had opportunity to express to you, have happily just terminated with the final decision given lately by the supreme tribunal of Brazil, which removes the obstacles raised against the realization of an enterprise that is indispensable to progress. The world situation created by the European war prevents, for the time being, the laying of the cables, the securing of materials, and the assurance of transportation thereof, but in any event it is convenient 'Not printed. 'Ante, p 37. 'Ante, p. 36. to conclude at once some preliminary details so as to be in a position to commence the work when circumstances permit after peace is made. The most important of these details is the one referring to the point at which the cable should land in this Republic, the point which the company thinks is difficult to fix on the Rio de la Plata, although it has considered the possibility of erecting it in the vicinity of Quilmes Beach, or near Atalaya. Desiring to commence immediately the studies required for that end and before the company makes the corresponding final election, I would be grateful to the Director General if he would be willing to indicate to me if the landing places mentioned or any of them conflict with laws or dispositions of the Argentine Government or offer difficulties in any other way. I salute the Director General with my most distinguished consideration [etc.] HENRY HUSSEY Up to this date, we have received no definite reply from the Argentine Government, although we have been assured several times that the application was being carefully considered. As you know, after succeeding in our case before the Supreme Court of Brazil, the Brazilian Government on October 27, 1917, executed a formal contract with this company for laying two submarine cables from Brazil to the Argentine Republic, viz.: (1) From Rio de Janeiro direct to the Argentine Republic; (2) From Santos (Brazil) direct to the Argentine Republic. A copy of this contract is on file in the Department of State and another copy is hereto annexed, translated by the Department.' The only possible objection to favorable action on the application would be the existence of a concession granted in 1909 to the Western Telegraph Co. (British), which concession contains certain preferential rights. Our claim has been that our 1885 concession antedates the Western Telegraph Co.'s 1909 concession and, consequently, the latter cannot conflict with our rights in any way. The validity of this contention has been supported by the Department of State. In view of the fact that no answer has been given by the Argentine Government to our application of March 8, 1917 (more than one year ago), and in view of the fact that our company now holds (since October 27, 1917) a contract from Brazil for this greatly needed cable, and, in view further of the enormous interests at stake, both on the part of the United States Government and of the citizens of the United States, of a commercial nature, we respectfully request that urgent instructions be sent at the earliest possible moment by the Honorable Secretary of State to the proper diplomatic representative in the Argentine Republic, to obtain a speedy reply to our request of March 8, 1917, in order that a landing place for our said cables on the coast of the Argentine Republic may be fixed. I purpose going to Washington next Friday, March 29, and should be glad to call upon you in regard to this matter late Friday afternoon or Saturday morning, or, if inconvenient to see me at that time, I shall be glad to come to Washington at any other time you may determine. With our sincere appreciation of your support of our endeavor to extend our American-owned and American-controlled cables from Argentina to Brazil, I am [etc.] 'Not printed. JOHN L. MERRILL File No. 835.73/71 The Secretary of State to the Ambassador in Argentina (Stimson) [Telegram] WASHINGTON, March 29, 1918, 6 p. m. Department's September 28, 1916, and your despatch No. 324, February 9, 1917. The Central & South American Telegraph Co. made a formal application to the Argentine Government for a landing site for their cables from Brazil to the Argentine on March 8, 1917. No reply has been yet received by the company. You may request the Argentine Government to reply at its early convenience in order that a landing place for the cables on the coast of Argentina may be fixed. LANSING File No. 835.73/63 The Secretary of State to the Ambassador in Argentina (Stimson) [Telegram] WASHINGTON, March 29, 1918, 7 p. m. John L. Merrill, vice president of the Central & South American Telegraph Co., has informed the Department that by a decree dated February 21 and published in the Official Bulletin of March 5 the Argentine Government authorized transitorily the River Plate Telegraph Co. to collect three francs per word on telegrams received from North America destined for Brazil, excepting the Amazon Telegraph Co. and wireless stations. Ask the Argentine Government why this apparent discrimination is made against telegrams coming from North America, and cable Department explanation. LANSING File No. 835.73/73 The Ambassador in Argentina (Stimson) to the Secretary of State [Telegram] BUENOS AIRES, April 2, 1918, 11 a. m. Your March 29, 7 p. m., and March 29, 6 p. m. With regard to the application made by the Central & South American Telegraph Co. on March 8, 1917, to the Argentine Government for the naming of a landing site for their cables from Brazil to Argentina, and the further application to the same effect made by the company in October last, I have, as instructed by the Department, made requests of the Foreign Office that its reply in the matter be made as soon as possible. In regard to the instructions contained in the Department's March 29, 7 p. m., regarding the discrimination permitted by the Argentine Government against cables received from North America destined for Brazil. I have discussed the matter fully with the company's manager here. He is of the opinion, in which I entirely concur, that the matter is one which at present calls for a protest by the company to the Ministry of the Interior, and if necessary, subsequent legal action, with the Embassy's intervention as the ultimate remedy. It will be remembered that the company in 1898, by legal action against even higher discriminatory rates in use by the Western Telegraph Co., obtained a favorable decision from the Argentine courts and a resultant closing of the Western Telegraph Co.'s operations for a period of nine months. Moreover, and as it seems to me of greater value in the argument against the Embassy's present intervention in the latter matter, as the Department has already been advised, the Embassy is at present endeavoring to the best of its ability to assist the company in obtaining the permission from the Argentine Government which it requested on February 20 last to lay a cable from Argentina to Montevideo. This concession in any case will automatically solve the problem of the transportation of the cables from North America to Uruguay and Brazil, and will probably also entail the selection by the Government of the desired landing site. I have requested an interview of the President to lay the matter of the desired concession before him in case events take any unfavorable turning in regard to the granting of the concession. But from conversation with the Minister of Foreign Affairs, I believe that the matter is receiving favorable consideration; and I fear that if the Embassy at this time puts in too many requests regarding the company's projects, the issues will become confused and the main feature des red, that of the right to lay cables from Argentina to Montevideo, which will solve the other problems, may be rejected and some minor points at issue be conceded. STIMSON File No. 835.73/75 The Ambassador in Argentina (Stimson) to the Secretary of State [Telegram] BUENOS AIRES, April 9, 1918, 5 p. m. My April 2, 11 a. m. I have just come from an audience with the President, granted on the subject of the petition of the Central & South American Telegraph Co. to lay a cable from Buenos Aires to Montevideo. I explained the matter fully and completely to him: its past history; the objection raised by the British or "Western" company, based on their alleged monopoly; the objections to this claim under the Argentine Constitution; the reasons of convenience for the completion of this, the last link in the chain of the Pan American cable from New York around South America; the international need of such a system, both to Argentina and Uruguay; and, finally, the particular interest the Government of the United States took in the matter. He appeared to be much interested, and assured me he would give the matter serious and friendly consideration himself, and asked me to leave with him personally the copy of the brief application with me, prepared by Mr. Shirley, and the map showing the lines of the telegraph company. STIMSON File No. 835.73/77 The Ambassador in Argentina (Stimson) to the Secretary of State [Telegram] BUENOS AIRES, April 10, 1918, 4 p. m. My April 2, 11 a. m., and April 10, 3 p. m. In the same conversation referred to in the last telegram the Uruguayan Minister informed me that he had asked for an audience with the President of Argentina before he left for Uruguay this evening, and he has stated to me that he would urge upon him the importance of the granting of the Central & South American Telegraph Co.'s petition for permission to lay cable from Argentina to Montevideo, informing him of the interest the Uruguayan Government had in the matter. STIMSON File No. 835.73/78 The Ambassador in Argentina (Stimson) to the Secretary of State [Telegram] BUENOS AIRES, April 12, 1918, 5 p. m. My April 10, 4 p. m. The Uruguayan Minister informs me that in accordance with my request in his interview with the President of Argentina two days ago he took up the matter of the permission desired by the Central & South American Telegraph Co. to lay cable from Argentina to Montevideo. The President spoke to him favorably about the desired concession and stated that no monopoly by the Western Telegraph Co. would be permitted. STIMSON File No. 835.73/81 The Chargé in Argentina (Robbins) to the Secretary of State [Telegram] BUENOS AIRES, August 10, 1918, 5 p. m. Embassy's April 24, 11 a. m.1 Doctor Martienzo, Attorney General of the Republic, to whom the petition of the Central & South American Telegraph Co. to lay a cable from Buenos Aires to Montevideo was referred, has given us his opinion that such petition should be granted and that the laying of this cable will in no way contravene the concession previously granted the Western Telegraph Co. Both national Attorneys General have now rendered a favorable opinion and I understand that the presidential decree formally granting the company's petition will shortly be issued. The Western Telegraph Co. has now no further recourse beyond that of requesting a reconsideration of the Attorney Generals' decision. 'Not printed. ROBBINS |