File No. 422.11 G93/458.]
The Acting Secretary of State to the American Chargé d’Affaires.
Washington, May 8, 1912.
The greatest concessions that the railway company can make are embodied in Department’s telegram of April 23. General Plaza’s reply, which the Department must assume to represent the Government of Ecuador correctly, has been communicated to the railway officials here, who inform the Department that they are unable to accept the proposal as transmitted in your April 25. This proposal appears to be entirely at variance with General Plaza’s previous statement, communicated in your April 21, which was essentially accepted by the railway company. The Government of the United States is therefore constrained to believe that a due regard for good faith in business dealings requires the Government of Ecuador immediately to meet its just obligations to the Guayaquil & Quito Railway Company.
The Government of the United States is compelled to inform the Government of Ecuador that, in view of the long-continued and fruitless efforts that have been made to secure for this American company due consideration, it cannot permit the destruction of this important and legitimate American enterprise, and that its duty to its citizens and their property requires that it secure for the railway company the full and adequate enjoyment of all its just rights and privileges.
The Government of the United States, in thus clearly making known its self-evident duty regarding the treatment of this American company, is mindful of the long-standing friendly relations which have existed between the two countries and would view with [Page 415] deep regret the continued failure on the part of the Government of Ecuador to provide the funds which it is apparent it has at its command, thus leaving to this Government no alternative but to take, on its own part, such action as to it may seem appropriate in order to assure this company that complete and ample protection to which it is so clearly entitled.
You will communicate this telegram textually to the Government of Ecuador, leave a copy with the Minister for Foreign Affairs, and request an immediate reply.