The Secretary of State to the Minister in Guatemala (Geissler)
40. Your telegrams 92 and 93, July 19, concerning Shufeldt claim. As to first proposal of the Guatemalan Government mentioned in your 92, the Department does not deem it desirable for you to act as a “friendly arbitrator”. As to the second proposal, Mr. Shufeldt has already declined to accept the terms of settlement mentioned in the memorandum of the Ministers of Agriculture and Finance dated November 30, 1928, first, because the amount mentioned was not deemed sufficient to cover his losses, and second, because the terms of payment were not satisfactory. While the Department would be glad to see this matter settled by a direct agreement between Mr. Shufeldt and the Guatemalan Government, it does not consider that Mr. Shufeldt is unreasonable in declining to accept the proposed settlement just mentioned. Therefore, it seems necessary to resort to the third proposal of the Guatemalan Government, namely, to submit the claim to an arbitral tribunal. The Department suggests that the case be submitted to a special tribunal under the provisions of the second and third articles of the Pan American Pecuniary Claims Convention of 1910.29 In such case, it would seem desirable, in order to prevent unnecessary expense, to submit the case to a single arbitrator.’ So inform Foreign [Page 144] Minister and say that if the Guatemalan Government agrees to the above suggestion, the Department will prepare a compromis and forward it to the Guatemalan Government for its consideration. If Guatemalan Government prefers matter can be arranged by an exchange of notes. Report reply briefly by telegraph and fully in writing.