File No. 822.124/201.

The Secretary of State to the American Chargé d’Affaires.

[Telegram.—Paraphrase.]

Regarding your despatch No. 97, the War Department finds that it is not expedient for the Canal Commission to undertake the whole work of sanitation of Guayaquil, but if that is the desire of Ecuador, and assuming that the Commission will be furnished with the Coignet surveys and that these are sufficient to insure accurate engineering estimates, the War Department will designate a board of five consisting of Gorgas, an engineer, a sanitary expert, an accountant and a clerk. Investigation by such a board would cost, according to Gorgas, about $5600. Goethals adds $2500 for preparation of costs of engineering works including sewers, water supply and pavements.

The War Department cannot entertain any proposal that it pay any part of such expenses; furthermore, Congressional authorization of payment thereof by the Government of Ecuador must be had.

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Communicate the substance of the foregoing to the Government of Ecuador and, if that Government assent thereto, you will obtain its acceptance in such form as to assure the payments.

Knox.