File No. 422.11 G93/483.]
No. 94.]
American Legation,
Quito, Ecuador,
May 7, 1912.
No reply had been received from the Ecuadorean Foreign Office to the
representations of this Legation in regard to the payment of 100,000
sucres to the Guayaquil and Quito Railroad Company, when the
Department’s instruction of May 3 was received.
[Inclosure.]
The American Chargé
d’Affaires to the Minister for
Foreign Affairs.
No. 60.]
American Legation,
Quito,
April 25, 1912.
Mr. Minister: I have the honor to inform
your excellency, that statements submitted by officials of the
Guayaquil and Quito Railroad Co to the Department of State in
Washington show that there is now due and owing to the railroad
company by the Government of Ecuador on bills heretofore approved by
appropriate Ecuadorean officials, about 375,000 sucres, entirely
exclusive of approved bills of the company for services rendered and
damages sustained during the recent revolution.
In order, however, to facilitate an arrangement, I am informed that
the railroad officials, who are extremely anxious to work in the
most harmonious relations with the Government of Ecuador, would be
inclined to consider favorably a compromise, if immediately
accepted, on the following bases:
“The Government of Ecuador after having paid one hundred thousand
sucres (S/.100,000), to pay hereafter fifty thousand sucres
(S/.50,000) monthly, in addition to its current account until such
time as the Government of Ecuador shall have been placed by virtue
of a loan in a position to extinguish all its indebtedness to the
railroad company, or in the event of the loan not being negotiated,
until such time as the total indebtedness of the Government to the
railroad company shall have been extinguished; and to unqualifiedly
approve and accept all other accounts previously passed by the
Director of Public Works, and to pay interest at the rate of six per
cent (6%) on the unpaid balance of the railroad accounts until such
accounts shall have been fully discharged.
“The railway company on its part, in consideration of the strict
compliance with the foregoing, agrees to adjust the revolutionary
bills on a basis of average earnings last six months last year plus
fifty per cent (50%) plus sixty-five thousand sucres (S/.65,000)
damages.”
I desire once again, to invite the attention of your excellency to
the critical financial condition that at present confronts the
railroad and to urge that your excellency’s Government make
immediate payment of the one hundred thousand sucres (S/.100,000)
for the coal ship. Your excellency will note that more than three
times this amount is owed by the Government of Ecuador to the
railway company exclusive of the revolutionary bills.
I avail [etc.]
