would naturally have to accept any price offered to them by the parties in whose hands the War Trade Board had unwittingly placed this weapon. The policy which my Government would desire be followed in this respect is a policy of liberty and justice which may avoid the monopoly made by consignees or by manufacturers, and to obtain this result the better, in my judgment, would be to establish the rule of not granting import licenses on applications which are not recommended by this Legation. My Government would be able to make the allotments in Ecuador to the respective exporters, big or little, proportionately and equitably, and to give me the corresponding instructions. In this same sense I sent to you my official communication of the 27th of last July, No. 16.1 Exportation on consignment ought not to be prohibited because this is the balance weight that would prevent the formation of manufacturers' trusts which lower or depress the market with probable damage to the Ecuadoran producers and with the upsetting of current prices in the New York market, which would affect the interests of other American manufacturers, or it may be those who would have bought cocoa at higher prices. I am [etc.] File No. 422.11G93/979 R. H. ELIZALDE The Secretary of State to the Minister in Ecuador (Hartman) [Telegram] WASHINGTON, November 21, 1918, 6 p. m. Your October 25, 7 p. m. Are the daily deposits made in the name of the Council of Foreign Bondholders? What is the amount of ⚫ remittance already made to London? File No. 422.11G93/988 LANSING The Minister in Ecuador (Hartman) to the Secretary of State [Telegram] QUITO, November 26, 1918, 8 a. m. Department's November 21, 6 p. m. Daily deposits made favor Guayaquil & Quito Railway Co. Total amount 79,000 sucres; no remittances to London. HARTMAN File No. 611.226/16 The Secretary of State to the Ecuadoran Minister (Elizalde) No. 43 WASHINGTON, November 29, 1918. SIR: I have the honor to refer to your memorandum of August 21, and to your communication of November 15, in both of which the request was made that import licenses might be granted by the appropriate authorities of the United States Government for the importation into the United States of the cacao now actually stored in Ecuador. 'Not printed. 1 In your memorandum of August 21 you stated that in order to make possible the complete payment of the coupons of the Guayaquil & Quito Railroad Co. bonds the Government of Ecuador proposes that it be permitted to export to the United States all the cacao which is actually stored in Ecuador which is about 14,000 tons, this price of sale to be used for the entire payment of the coupons which payment amounts to $859,740. It gives me pleasure to inform you that the Department of State is informed that the War Trade Board has to-day passed a resolution authorizing the importation from Ecuador to the United States of 14,000 tons of cacao. I am particularly glad to give you this information inasmuch as the Department of State is happy to have been able to be of assistance to Ecuador in gaining permission for the exportation of this cacao and thus aid in bettering the financial conditions in Ecuador. The Government of the United States is pleased that the Government of Ecuador will now make a payment covering the entire amount due on the coupons of the Guayaquil & Quito Railroad Co.'s bonds, thus fulfilling its obligations to this American company. ROBERT LANSING Accept [etc.] File No. 422.11G93/974 The Secretary of State to the Minister in Ecuador (Hartman) No. 206 WASHINGTON, December 6, 1918. SIR: With reference to the Department's telegram which was sent to you on December 6,2 regarding the exportation of 14,000 tons of cacao from Ecuador and the payment of the proceeds of the sale of this cacao on the coupons of the Guayaquil & Quito Railroad Co.'s bonds, there are enclosed for your information translation of a note dated August 21, from the Minister of Ecuador, and the answer of the Department thereto, dated November 29. The Minister's note reads in part: In order to make possible the complete payment of these coupons,' the Government of Ecuador proposes that it be permitted to export to the United States all the cacao which is actually stored in Ecuador, which is about 14,000 tons. The price of sale would be used for the entire payment of the coupons,' which payment amounts to $859,740. In the Department's note of November 29, the following statement is made: The Government of the United States is pleased that the Government of Ecuador will now make a payment covering the entire amount due on the coupons of the Guayaquil & Quito Railroad Co.'s bonds, thus fulfilling its obligations to this American company. 1 You are instructed to visit the Minister for Foreign Affairs immediately and give him copies of the two notes enclosed, requesting him at the same time to inform you whether the payment of the $859,740, has been made. If this payment has not yet been made, you will ask the Minister for Foreign Affairs to be so good as to cause it to be paid at once. You are further instructed to cable the Department the result of your interview. I am [etc.] For the Secretary of State: File No. 611.226/17 The Ecuadoran Minister (Elizalde) to the Secretary of State No. 28 [Translation] WASHINGTON, December 12, 1918. MR. SECRETARY OF STATE: I have the honor to refer to your kind note No. 43 of November 29 last, advising me that the War Trade Board will permit the importation of 14,000 tons of cacao now stored in Ecuador and that the Department of State hopes that my Government will in consequence pay in full the coupons [cupones] of the Guayaquil & Quito Railway Co., viz., the sum of $859,740, as I had offered to you in due course. I forwarded by cable to my Government your communication immediately on receiving it, and had not my telegram been delayed, I should have received the answer, which reached me yesterday, earlier. My Government in that answer informs me that it adheres to its promise to pay the above-named sum out of the proceeds of the sale of the cacao as agreed, but that the difficulty it now has to contend with is to procure steamers on which to ship the cacao to England. The importation of cacao into England being now allowed, there is advantage in, shipping to that country where the demand will permit of a speedy and profitable sale of the cacao on better terms, certainly, than in New York, and my Government could in this way redeem at an earlier date its promise to pay the above-named sum. I have been instructed to approach the British Embassy at the Capital and endeavor to have steamers sent to Guayaquil, but realizing the difficulties to be encountered, I bring the matter to your knowledge so as to find out whether your Government can help us in overcoming the obstacles that now stand in the way of our shipping the cacao and immediately fulfilling our offer. R. H. ELIZALDE I avail [etc.] File No. 422.11G93/991 The Minister in Ecuador (Hartman) to the Secretary of State [Telegram] QUITO, December 18, 1918, 5 p. m. The Minister for Foreign Affairs informed me to-day that the Minister of Finance unofficially informed him that on December 31. all money deposited interest Guayaquil & Quito Railway bonds will be placed to order Council of Foreign Bondholders. HARTMAN File No. 422.11G93/998 The Acting Secretary of State to the Ecuadoran Minister (Elizalde) WASHINGTON, December 26, 1918. SIR: I have the honor to acknowledge receipt of your communication of December 12, stating that your Government has informed you that it adheres to its promise to pay the sum of $859,740, in payment of the coupons of the Guayaquil & Quito Railway Co., out of the proceeds of the sale of 14,000 tons of cocoa, which the War Trade Board will now permit to be exported to the United States from Ecuador. Your note continues that the difficulty your Government now has to contend with is the procuring of steamers on which to ship the cocoa. The Department has received with much pleasure your renewed assurance that the sum of $859,740 will be paid on the railway bonds, and it is glad to inform you that it has received information to the effect that of the 14,000 tons of cocoa mentioned, 4,000 tons have already been shipped to New York, and 80 per cent of the value paid. One thousand bags, or approximately 875 tons, have also been shipped to London by the Leland Line, and 2,500 tons have been purchased and paid for by Frederic Huth & Co. of London. It will, therefore, be seen that of the total of 14,000 tons, 10,875 tons have already been sold or shipment arranged for, leaving only a balance of 3,125 tons on hand, the shipment of which can probably be arranged at an early date. Inasmuch as the Department has reason to believe in the accuracy of the above information, it hopes to be informed by you in the near future that the larger part of the above-mentioned sum of $859,740 has been used to pay the coupons of the railway bonds. Accept [etc.] For the Acting Secretary of State: FRANCE AGREEMENT BETWEEN THE UNITED STATES AND FRANCE EXTENDING THE DURATION OF THE ARBITRATION CONVENTION OF FEBRUARY 10, 19081 File No. 711.5112/64a The Secretary of State to the French Ambassador (Jusserand) WASHINGTON, February 13, 1918. MY DEAR MR. AMBASSADOR: I enclose herewith a draft 2 of an agreement extending indefinitely the arbitration convention of February 10, 1908, between the United States and France. If you find the draft acceptable and will kindly furnish me with the French equivalent of the English text, I shall be glad to have the agreement at once prepared for signature and to fix the time for its signature. I am [etc.] File No. 711.5112/63a ROBERT LANSING The Secretary of State to the French Ambassador (Jusserand) WASHINGTON, February 21, 1918. MY DEAR MR. AMBASSADOR: It having been finally determined to extend the arbitration convention of February 10, 1908, for a further period of five years instead of indefinitely, I beg to enclose herewith a new draft in English of the proposed agreement and to request that if you find it satisfactory you will kindly supply me with the French equivalent. I am [etc.] Treaty Series, No. 631 ROBERT LANSING Agreement signed at Washington, February 27, 1918; ratification advised by the Senate, March 26, 1918; ratified by the President, April 8, 1918; ratified by France, April 13, 1918; ratifications exchanged at Washington, May 15, 1918; proclaimed, May 16, 1918 BY THE PRESIDENT OF THE UNITED STATES OF AMERICA Whereas an Agreement between the United States of America and the French Republic extending, for another period of five years, For the text of the convention see Foreign Relations, 1908, 'Draft not printed. p. 331. |