File No. 814.51/180.

The Minister of Guatemala to the Secretary of State.

My dear Mr. Secretary: Immediately upon the receipt of the aide-mémoire of the 13th instant handed me by your excellency, I transmitted it by cable to my Government, requesting appropriate reply; and on Monday the 15th I called at the State Department to state that, doubtless on account of the Independence festivities in Guatemala, the answer would come immediately thereafter. In fact, this morning I left with Mr. Janes in the Latin-American Division, to be brought to your excellency’s knowledge, an extract from the said reply, and have the honor of addressing to your excellency the following communication:

The Minister for Foreign Affairs of Guatemala has sent me the following cablegram:

Guatemala, September 17, 1912.—Méndez, Minister of Guatemala, Washington, D. C.—As a direct consequence of the great importance of the negotiation which we are undertaking to carry out, it is to be feared that notwithstanding our good intentions, it may not be possible to terminate it in the short period indicated to us. Nevertheless we will do everything in human power to arrive at a solution within the period fixed. Inform the State Department of the most hearty appreciation of the Government of Guatemala for the admirable disposition, so cordially expressed, of the American Government to assist us in the financial adjustment; and at the same time state that our Government is giving its most earnest consideration to everything relating to the matter in order to be able to reach a speedy settlement of so important an affair; but that by the very nature of the proposal of adjustment made by the British Minister to the President of the Republic, as representative of the bondholders, such proposition is still under examination, and it is dependent upon the adjustment made with the bankers of the United States of America, to which adjustment the proposition continues subordinated, thus rendering premature and inexplicable any other action in the same sense.1

On the other hand, the Government of Guatemala is glad to acknowledge that arbitration is the most civilized and just manner of settling international difficulties, but as I have already stated to the British Chargé d’Affaires, we see nothing whatsoever in the present case which should be submitted to doubt or discussion, and we have therefore asked that the British Government specify the points which in its judgment might afford a basis for arbitration.

Specifically stated, the Chargé d’Affaires has made proposals to us which are yet to be acted upon, and we are awaiting a reply in order to decide upon appropriate action.

Toledo.

In bringing the above to your excellency’s knowledge I renew [etc.]

Joaquin Méndez.
  1. The original: “a cuyo arreglo ella [dicha proposición] permanece subordinada, lo cual hace prematura e inexplicable cualquiera otra acción en el mismo sentido.”