422.11 G 93/1273

The Minister in Ecuador (Bading) to the Secretary of State

No. 117

Sir: Referring to my despatch No. 90, of February 26, 1923,8 relative to the suit brought by Dr. José J. Estupiñán on behalf of the Government of Ecuador against the Guayaquil and Quito Railway Company for the recovery of 600,000 sucres alleged to have been deposited by the Government with the Railway in December, 1909, I have the honor to transmit herewith copy and translation of the decision of the Third Court of Letters of the Province of Pichincha, handed down on April 9th last,8 in which it is stated that the present case does not come within those designated in the railway contracts as subject to arbitration, and that therefore the court has full jurisdiction.

I likewise transmit copy and translation of the appeal of the Railway Company from this decision.8 The question of jurisdiction now goes to the Superior Court, after which it may be appealed to the Supreme Court. It seems probable that the case will ie prolonged until the next meeting of Congress, in August, at which time it is hoped that Congress can be persuaded to withdraw the suit.

I have [etc.]

G. A. Bading
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