Mr. Merry to Mr.
Hay.
American Legation,
San José,
Costa Rica, February 25,
1904.
No. 921.]Sir: In acknowledgment of your No. 575, of
February 4, and No. 576, of February 9, inclosing the complaint
presented by the attorneys
[Page 540]
of
the Salvador Commercial Company, elated February 3, 1904, I have the
honor to forward herewith copy of the dispatch which goes forward from
this legation by first mail to the Government of El Salvador in
compliance with instructions received from you.
* * * * * * *
With assurances, etc.,
[Inclosure.]
Mr. Merry to
Señor Morales.
American Legation,
San José,
Costa Rica, February 24,
1904.
Esteemed Sir: I regret to advise you, under
instructions from the Government of the United States, that the
trustee for the Salvador Commercial Company, acting under competent
legal advice, has declined to receive the indemnity bonds agreed by
the Government of El Salvador to be delivered to said trustee on
December 17, 1904, and tendered thereto by the consul-general of El
Salvador on January 10, 1904. The reason given for this declination
is that the legislation enacted by Salvador fails to comply with the
agreement of August 17, 1903, in the following particulars:
- (1)
- The said bonds are not secured by 10 per cent of the
customs receipts, as required by article 2 of the
agreement.
- (2)
- It makes the mere delivery of the bonds full payment of
the claim, whereas under section 9 of the agreement the
award on the claim is not to be deemed satisfied unless the
bonds are paid at their respective dates of maturity.
The Congress of El Salvador convening proximately, it is respectfully
suggested that your excellency’s honorable Government will rectify
the above omissions by proper enactment, and thus carry out the
agreement of August 17, 1903.
While assured that your excellency’s Government will recognize the
propriety of the amendment of the legislative enactment of September
22, 1903, above alluded to, I am instructed to notify your
excellency that unless there is a full compliance with the terms of
the agreement of August 17, 1903, the United States Government will
require the payment of the full amount of the arbitration award made
on May 8, 1902. With confidence that your excellency’s Government
will unhesitatingly provide for the execution of its agreement with
the claimants, I respectfully await your further information
thereon.
Be pleased, etc.,
