File No. 814.51/192.
The British Ambassador to the Secretary of State.
Washington, November 13, 1912.
Sir: Some days ago Mr. Kerr of this Embassy called at the State Department for the purpose of putting unofficially before the State Department the views of His Majesty’s Government with reference to the persistent procrastination of the Guatemalan Government in the matter of the security pledged to the bondholders.
Your note of September 25th1 to the British Chargé d’Affaires had encouraged His Majesty’s Government to hope that the United States. Government would now give their active support to the representations made on behalf of the bondholders that the security pledged to them should be restored, and a situation now grown intolerable should be once for all ended.
It was, therefore, with a feeling of disappointment that His Majesty’s Government learnt that, in reply to the request for support which Mr. Kerr was instructed to make, a proposal was made that His Majesty’s Government should suspend action for an unlimited period to permit the Guatemalan Government to negotiate a general settlement with a group of American bankers.
His Majesty’s Government have carefully considered this proposal and regret that it does not appear to them to offer a fair prospect of a satisfactory solution of the present difficulty. This is not the first, time that the Guatemalan Government have stated that they were on the point of coming to an agreement with American financiers; and though nothing came of the negotiations, it was subsequently learnt that the terms which it was proposed to put before the British bondholders were most unfair.
Recent experience as regards attempts to negotiate general settlements in cases similar to the present have given no grounds for hoping that any such endeavour in this instance would lead to an early settlement on terms which would be satisfactory to British bondholders, and I am instructed by my Government to inform you that they must continue to press for the restitution to the bondholders of the security solely pledged to them or for arbitration if the Guatemalan Government continues to refuse to comply with this reasonable demand.
His Majesty’s Government therefore earnestly hope that the United States Government will reconsider the question and will afford them their hearty and immediate co-operation.
I have [etc.].
- Should be Sept. 21st.↩