I have endeavored at various times to impress upon the minister for
foreign affairs the desirability and necessity of promptness in
answering that note from this legation. On the 11th ultimo I addressed
him a note to that effect, to which he responded the following day,
saying that the delay was caused by the difficulty and slowness of
communicating with the coast, where he was obliged to send for the data
essential for his reply, but that I might anticipate his answer within a
few days.
Considering the delay, as well as the importance of the subject, I deemed
it best to embody a full brief of the minister’s note in a telegram to
the Department, which telegram is confirmed.
I have the honor to inclose herewith a copy and translation of the said
note.
[Inclosure.—Translation.]
Mr. Paul to Mr.
Beaupré.
Republic of Colombia, Ministry of Foreign
Affairs,
Bogotá, May 12,
1902.
Sir: Now, as formerly, during a disturbance
of public order which has already been going on for over two years
and a half, it has been found necessary to make use of private
property in order to aid the reestablishment of order. The
requisition of property by the legitimate authorities has been
extended to foreigners, as is sanctioned by the principles of
international law, as also by treaties.
The Government has no flotilla in the Magdalena River. This river is
the principal means of communication with the interior. The defense
of this river has therefore to be provided for in times of
disturbance by the arming of merchant vessels. This has been done
with regard to boats, the property of various fluvial companies. Up
to now objection has never been raised to this practice as being
illegal, although such is now the contention of the Cartagena
Fluvial Company. This company is evidently ignorant of what has been
the practice up to now, and which is allowed by article 8 of the
treaty still in force between Colombia and the United States, which
sanctions the use which is being made of the said boats.
On this point the law of Colombia is clear that vessels of whatever
class, engaged in the navigation of rivers subject to the
jurisdiction of Colombia are, under the obligation of giving their
services to the Government, subject to indemnization, whatever may
be the services the latter may require, whether absolute transfer or
only the use of the said vessels.
In times of revolution traffic on the Magdalena river and tributaries
is completely interrupted. It is therefore difficult to understand
the objections raised to the use of the vessels by the Government.
Instead of having to bear the cost of keeping the boats in repair
during a period of inactivity, they are receiving the pay of hire to
the Government besides compensation for any deterioration that may
result from their use.
With regard to the use made of the boats of the Cartagena Fluvial
Company, the official bulletin, No. 46, published in Barranquilla,
publishes the bases of arrangement proposed between the governor of
the department of Bolivar and Mr. J. F. Ford, the representative of
the above-mentioned company.
The principal points of the proposed arrangement referred to the
return of the vessels to the company; to the fixing of the hire to
be paid for their use; to the valuation and repair of the damages
suffered by the said boats. A suitable arrangement had almost been
arrived at; the governor had even set aside a considerable sum of
money to be handed over to the company, which was being realized
when matters were brought to a standstill by the absence of Mr.
Ford. Although Mr. Shipley took charge of the business, he did not
feel himself authorized to yield on two of the points brought
forward by Mr. Ford, and which while being unacceptable to the
Government are of no importance to the company, seeing that in all
probability there will be no need for the present to again take over
the boats which have been returned to the company; nor is there any
idea of the Government continuing to run the traffic of merchandise
for its own account. And these are the two points which are the
subject of controversy.
Had it not been for the persistence of the company’s representative
with regard to the above, the vessels returned would already have
begun to receive the benefits accruing from the transport of
articles of import and export, instead of keeping exposed to rot by
lying idle.
I have entered into the above explanations in order to give a
satisfactory reply to Mr. Hart’s note of the 1st of February last.
Mr. Hart, referring to the occupation
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of the vessels of the said company, deals also
with the desired restitution of such vessels as still form part of
the Government flotilla as soon as the Government can spare them.
Orders in this sense will be transmitted to the governor of the
department. He will be instructed to conclude with the
representative of the company such arrangements as may be necessary
to terminate the question at issue, granting him all the facilities
necessary for the prompt repair of the vessels. For this he is, as
has already been stated, to pay on account certain sums of money as
an advance on the debt and indemnity payable to the said
company.
Moreover, once the rebellion has been put down the Government will
act as they have done in former times when the river companies have
accepted the terms of payment offered. They will use every means in
their power to raise the sums necessary for the prompt settlement of
the debts owed by the Republic as the result of expenses incurred;
expenses which it has not been found possible to meet with the
sources of revenue hitherto at the disposal of the Government. These
sources of revenue have consisted in emissions of paper money and
extraordinary taxes on private property, as the ordinary sources of
revenue have almost entirely ceased to give any yield
whatsoever.
The above-mentioned note of the 1st of February last has been
transmitted to the governor of the department of Bolivar. His report
on the subjects which have been the cause of dispute with the
Cartagena Fluvial Company will be transmitted to your legation; also
the governor’s report relative to the complaints of want of
protection, recruiting of employees, and interference in traffic,
formulated by the Cartagena-Magdalena Railroad Company.
Moreover, it must be pointed out that the governor can not furnish
these reports or explanations till the companies shall have put
their complaints into a concrete form. For example, with regard to
the complaint of want of protection put forward by one of them, it
is not known whether in a particular instance the company appealed
for and was refused protection which it was in the power of the
authorities to grant or whether the company regards itself as
entitled to a permanent protection, even in the most critical
moments, when the course of military operations would render such
impossible.
I am also obliged to defer for the present any explanation relative
to the complaint put forward by the Cartagena Terminal and
Improvement Company with regard to payment of light-house and port
dues, for want of details, as it will be necessary for them to
specify the actual causes of complaint. With regard to this matter,
however, it must be noted that in conformity with the legislative
decrees of 1900 and 1901, light-house, harbor, port, tonnage, pilot,
and ballast dues, and, in general, all dues connected with the port,
have to be paid in gold or in the currency of the country, as the
case may be. With regard to port and light-house dues, the case
turns on the question as to whether they are the property of the
nation or private concerns. In the latter case it depends on the
arrangements made or the contracts which may be concluded in the
future with the respective concessionees. The result, therefore, has
necessarily been that, notwithstanding the fact that the measure
applies generally, in some cases the said dues are payable in gold
and in the others in paper currency. This does not mean, however,
that payment in gold is to fall particularly on certain persons or
companies. Payment of dues in gold is one of the measures which have
been adopted with a view to restoring the circulation of a metallic
currency.
The companies dealt with in this note are called upon to play a great
part, resulting in benefit to themselves and to that portion of the
country in which they have established themselves. But they need the
impulse of a just administration. Considering the fact that the
interests of the country and those of the company are one and the
same, I feel it my duty to draw your attention to the above in the
belief that your legation will deem the moment opportune to take the
necessary steps so that the said companies may be properly informed
of the real state of the case.
From the correspondence exchanged between the governor of the
department and the representatives of the companies as well as from
the reports transmitted by the former, the policy of the companies
is clear They wish, under any pretext, to rid themselves of the
burden of carrying on the negotiations by having immediate recourse
to the diplomatic channel. At the present stage this is quite
unnecessary, ignoring as it does the nature of contracts concluded
between the Republic and the companies. In the contracts themselves
and in the laws can be found means sufficient for the settlement of
any differences or difficulties that may arise.
In defiance of the contracts and of the laws relative to the
circulating medium, the representative of the companies has
arrogated to himself the right of fixing the tariff for freight,
passenger tickets, etc., in currency noncurrent in the country, thus
raising disproportionately the prices and directing trade from
Cartagena. The commercial portion of that city, as well as the
authorities, complain of the proceedings of the
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said representative, his spirit of
perpetual hostility in everything, and the brusqueness of his
character.
It is clear, therefore, that it is owing to the measures taken and
the disposition shown by the manager of these companies that instead
of benefiting by the reaction now taking place in favor of peace,
they are working their own ruin.
The Government has always taken into favorable consideration any
claim put forward by these companies. Both the contracts and the
laws of the country offer them every facility for the carrying into
effect of their rights. The contracts themselves provide for
arbitration when differences may arise as to their interpretation.
The law decrees that the goods, rights, and interests of foreigners
shall be subject to the decision of the same judges, tribunals, and
administrative authorities as deal with the cases of their own
nationals; that contracts concluded in Colombia between the
Government and foreigners, whether as individuals or companies,
shall be concluded in conformity with the Colombian law, and that
the rights and obligations arising out of these contracts shall be
subject to the exclusive interpretation of the local judges or
tribunals.
The fact that the companies represented by Mr. Ford are privileged or
subsidized by the Republic only proves the interest the Government
takes in them, as was clearly shown when the governor of the
department drew up the basis of an arrangement by which the Fluvial
Company of Cartagena would again be in a position to carry on the
business of navigation for its own account. It is to be hoped that
the above-mentioned company will see its way to meet the patriotic
advances made by the governor of the department, who, with the
exception of two of the boats, has put their vessels at their
disposal. These two will be returned as soon as possible, payment
being made for hire and damage.
With regard to the other two companies, they will continue to receive
not merely the treatment to which they are entitled, as is requested
by your Government, but also such protection as the authorities can
possibly extend to them and as the actual situation of the country
will allow.
I avail, etc.,
