File No. 814.51/180.
The Acting Secretary of State to the British Chargé d’Affaires.
Washington, September 21, 1912.
My Dear Mr. Chargé: I refer to your communication of the 28th ultimo, in which you state that His Majesty’s Government has instructed [Page 504] the British Chargé d’Affaires at Guatemala to demand that the claims of the British holders of the bonds of the Government of Guatemala be submitted to arbitration. You say that His Majesty’s Government, having exhausted all possible methods of negotiation, has been obliged to make appeal to arbitration to arrive at a settlement. In pursuance of instructions you request that this Government use its good offices in support of the representations of His Majesty’s Government to the end that the matter may be submitted to arbitration.
In accordance with the desires of your Government I took occasion on the 13th instant to call to the attention of the Guatemalan Government, through its representative in this city, the situation which was rapidly developing because of the long continued refusal of the Government of Guatemala to make any serious effort to comply with its just obligations. The promise which the Guatemalan Government had made last May to enter into some arrangement to place the finances of Guatemala upon a firm economic basis within sixty days was recalled to the Minister, and it was pointed out that the time had arrived when the Government of the United States must inform the Government of Guatemala that it could no longer interpose its counsel to influence Great Britain to desist in demanding the immediate arbitration of just British claims.
Upon the Minister’s repeated and insistent request that an additional period of time be granted for the consummation of the general arrangement required, I finally consented informally to communicate with the British Government to the end that the Guatemalan Government might have an additional period of twenty days in order to enable it to, effect a settlement which the Department was informed by Señor Méndez was then on the point of being attained.
Copies of the Department’s aide-mémoire which was handed Senor Méndez on the 13th instant, and of his reply dated the 18th instant, are transmitted for the information of your Government.
Accordingly I would ask you, my dear Mr. Chargé, to ascertain whether your Government would be willing to accord to the Government of Guatemala the period of twenty days (which it is understood should begin to run on the 17th instant) within which it will be expected that the general financial arrangement demanded by the situation will have been satisfactorily consummated.
I am [etc.]