File No. 822.124/309.
The American Minister to
the Secretary of State.
[Extract.]
No. 26.]
American Legation,
Quito,
August 30, 1913.
Sir: Referring to previous correspondence
regarding the contract for the sanitation of Guayaquil, I now have the
honor of transmitting further correspondence between this Legation and
the Minister for Foreign Affairs on this subject. * * *
When I first began to look into this matter there seemed to fee at least
a fair chance of our getting it, but things have been going steadily
worse for some time and Ecuadoreans of responsible position have become
more outspoken against us in this than formerly.
The firm of J. G. White & Co. is endeavoring to obtain the contract
and, in order to avoid the anti-American feeling, is working through its
London house. The local representative of MacArthur Bros., Mr. E. C.
Brooks, informs me that the firm does not reply to him and that it has
never yet approved the bid he made in its name although there has been
plenty of time for such reply and approval. MacArthur Bros., therefore,
will have no one to blame but themselves if they fail to obtain the
contract. This Legation has been taking all possible steps to remove the
anti-American feeling and to get the work for any reputable American
concern which might desire to compete, but it is naturally quite
impossible for it to overcome the indifference or neglect of the firms
themselves. It will
[Page 511]
continue
during the time I am here to forward in every proper way American
interests in this as in other matters.
Finally, however, I should add my profound conviction that no American
firm, however much it may desire this work, has the slightest chance of
success on a business basis. It is acknowledged here that we are the
most advanced nation in tropical sanitation and that we could do the
work both economically and efficiently; but any American bids will be
thrown out probably.
I have [etc.]
[Inclosure 1—Translation.]
The Minister for Foreign
Affairs to the American
Minister.
No. 419.]
Republic of Ecuador,
Ministry of
Foreign Affairs,
Quito,
August 14, 1913.
Mr. Minister: In answering with my note
No. 378, of July 25 last, the one which your excellency was pleased
to send me under the number 17, of the 16th of the same month, I
informed you that I had transcribed to the Ministry of the Interior
your above-mentioned note to obtain the explanations relative to the
answer given by the committee on water supply of Guayaquil to the
proposal of the American firm Max Brooks & [sic; should be MacArthur Bros.].
To-day I have received from the said Ministry note No. 619, dated on
the 9th of the present month, in which are given the desired
explanations, in virtue of which I take pleasure in transcribing it
to your excellency. It says:
Mr. Minister for Foreign
Relations: I answer your note No. 1251, of the 25th of
last month, in which you transcribed to me the note of the
minister of the United States of North America calling your
attention to and at the same time asking that there be
brought to the attention of the Chief of the State the
answer which the committee of water supply of Guayaquil gave
to Mr. Brooks, an answer which the minister calls
extraordinary because, as he says, the above-mentioned
committee does not take into any consideration the proposal
of the American firm Max Brooks [MacArthur Bros.] except in
the event that all European bids are found to be
unsatisfactory. The minister believes that this would place
the American firm in a bad position and would constitute a
real discrimination against the United States.
In the letter of the committee above referred to, to which
the minister of the United States of North America refers,
there is no phrase which can be interpreted correctly as
meaning that that committee considered postponing the
proposal of Mr. Brooks because it was made by an American
citizen or that it would be taken into consideration only if
none of the European bids were satisfactory. In that note it
is expressed with clearness that, before the proposal of Mr.
Brooks was presented to the committee, that body had begun
negotiations with European companies for the sanitation of
Guayaquil, and this proceeding imposed on the committee the
duty in seriousness and honesty of not opening negotiations
with any other person, whether European or American, while
the negotiations already begun had not been terminated. The
committee sent to Europe a commissioner, and he has labored
conscientiously and obtained various proposals and projects,
even getting almost contracts ad referendum. And this being
so, it was natural and logical that the committee should
have resolved, as it did, not to take up the study of any
proposition until it should have learned the exact results
of the mission of the commissioner, whose return is to be
very soon, as is believed. These are the reasons which the
committee of canalization of Guayaquil gave, and I will add
to them that such a proceeding of the committee has not
injured anyone in any way, since, taking into consideration
the above-mentioned facts, our laws and that of every
civilized nation declare the liberty of contracting without
the exercise of this right being considered as injurious to
the rights of others. God and liberty.
Modesto A. Peñaherrera.
I avail [etc.]
[Inclosure 2.]
The American Minister
to the Minister for Foreign
Affairs.
No. 25.]
American Legation.,
Quito,
August 18, 1913.
Mr. Minister: I have the honor to refer to
your excellency’s note, No. 419, of August 14, which contained the
text of a communication to the Ministry under your charge from the
Ministry of the Interior relative to the bid for the sanitation
[Page 512]
of Guayaquil of Mr. E. C.
Brooks, in the name of the firm of MacArthur Bros, of New York (not
the firm of Max Brooks &, as your excellency’s note has the name
by mistake). The communication of the Ministry of the Interior fully
approves the answer of the president of the Junta de Agua Potable de
Guayaquil to Mr. Brooks stating that no consideration would be given
to his bid until all European bids were found to be unsatisfactory,
thus constituting a real discrimination against American
interests.
Before sending that note to my Government, I must request your
excellency to be good enough to inform me whether that reply is to
be considered as the official answer of the Ecuadorean Government in
this matter or merely as the opinion of the Minister of the
Interior.
I avail [etc.]
[Inclosure 3—Translation.]
The Minister for Foreign
Affairs to the American
Minister.
No. 436.]
Ministry for Foreign Affairs,
Quito,
August 23, 1913.
Mr. Minister: I have the honor of
answering the note of your excellency, No. 25, dated the 18th of the
present month, in which you acknowledged the receipt of mine marked
with the number 419, which contained the text of a communication
from the Minister of the Interior relating to the proposal made by
Mr. E. C. Brooks, in the name of the firm of Max Arthur Bros, [sic; should be MacArthur Bros.] of New
York.
Your excellency says that that communication of the Minister of the
Interior approves in all its parts the answer given by the president
of the committee of water supply of Guayaquil to Mr. Brooks,
confirming that his proposal would not be taken into consideration
until it appears that the European proposals are not satisfactory,
which amounts to establishing a real discrimination against American
interests.
I permit myself to believe, Mr. Minister, that the note of the
Minister of the Interior in question has not been properly
interpreted by your excellency, since if it is true that there can
be seen in it a tacit approbation of the answer of the president of
the committee on water supply of Guayaquil, it itself explains in a
very clear manner the reasons which the president of the committee
had in not taking into consideration the proposal of Mr. Brooks and
among these reasons there is none which can be interpreted as an
injurious preference against American interests.
Regarding the request which your excellency makes as to informing you
whether the answer of the Minister of the Interior should be
considered as an official answer of the Ecuadorean Government, I beg
to explain to your excellency that my Government does not consider
it proper to give an official answer to this matter, which belongs
solely and exclusively to the committee of water supply of
Guayaquil. On account of the great consideration which your
excellency deserves and out of deference to you, I transmitted to
the Minister of the Interior your kind note, number 17, of the 16th
of July last, with the object of obtaining the explanations which
your excellency desired, and when I obtained them and communicated
them to your excellency I believed that I had fulfilled the object
which I proposed to myself.
I avail [etc.]
