fillment of a contract at a defined time when circumstances independent of his will, would find him unable to meet his engagements at the time specified; notwithstanding, I take pleasure to inform your excellency that my Government is still pursuing with energy the course it has followed and to which I referred in my note of the 16th instant, and I can add that if, before the assembling of the legislature, it is possible to meet with your excellency's desire, my Government will feel highly satisfied, as it always has been, to comply with the requirements of your excellency. Your excellency also deems convenient to insist on the point that the credits of the German citizens against Guatemala should be excluded from the effects of the laws couched in the decree No. 440, and also appears to believe that, in setting aside such an exclusion, the principles of equity and justice would be offended. May I be permitted to observe to your excellency that, in so doing, the very fact of admitting such an exclusion would become a real offense against those principles? When the conversion into bonds of some fiscal debts was decreed, an act which obeys unavoidable necessities of the treasury and not issued taking into account the persons individually, but only the nature of the debt, it resulted, as a logical consequence not to be eluded, that among the creditors were a number of foreigners and Guatemalans. To make an exception in favor of individuals of a nationality to the prejudice of those of another would certainly be unjustifiable to the principles of equity. To establish such an exception in favor of individuals of a foreign colony, however worthy of consideration it may be, as the German undoubtedly is, overlooking the national creditors subject to said law, not only would be unjustifiable before the principles of equity, but in so doing a violation of the laws of public rights would then exist. According to said law, the foreigners residing in a country can arrive with regard to franchises and rights at a point of equal standing with the citizens of that country without being entitled to any further prerogatives. But above all that has been said on the subject I feel a great pleasure in assuring your excellency that my Government will do its utmost, without any further indications on your part, to urge the means that are being taken for the general arrange ment of the financial situation of the country and as a consequence be able to include in such arrangement the credits above mentioned, without injuring a legislative disposition by which my Government must be the first to abide. Concerning the payment made to R. H. May, to which you have reference, allow me to say that, in my judgment, it does not entail any violation of the clause regarding the rights of the nation more favored, stipulated in the treaty with the German Empire, signed on September 30, 1887, as I briefly bring it to the recollection of your excellency. My Government did not recognize any debt owed to R. H. May when he presented his claim to such, and he having proposed to submit it to an arbitration, Guatemala accepted, inasmuch as the circumstances created no objection to arbitration and also that it was a decorous means to avoid any difficulty with a friendly country. The decision favored May, and the Government found itself compelled to submit to an obligatory judgment which implied an indemnity to the claimant. So it is, then, your excellency will be pleased to agree, that while the clause of the nation more favored can be applied when related with commercial transactions between both countries and are voluntary acts of contracting governments; but not so in acts where commerce is not interested and that are independent from the voluntary action of said Governments, hence outside of the regular and normal proceedings. May I be allowed to entertain the hope that your excellency, seconded by his illustrated wisdom, will duly appreciate the foregoing exposition of the facts and remain firmly convinced of the honorable conduct observed by my Government in this question? Please accept, etc., JUAN BARRIOS, M. [Inclosure 12.] The British minister to the Guatemalan minister for foreign affairs. BRITISH LEGATION, Guatemala, October 5, 1901. MR. MINISTER: Your excellency informs me in your note of the 30th ultimo that the Government of Guatemala, independent of its own will, is unable to fix the date for the arrangement (or payment) of the external debt and others, but, notwithstanding, will persevere in the measures taken for this purpose, as expressed in your excellency's communication of the 16th, and with the intention of complying with my wishes, before the opening of the session of the national assembly. Your excellency also states that your Government will exert all its efforts in order to arrive at a general settlement of the financial difficulties of the country, more insistence on my part being unnecessary, and doubtless that the debts in question shall be included in said arrangement without any infringement against the legislative measure which your Government is the first to guard and respect. With satisfaction I take for granted the assurances offered by your excellency, but, nevertheless, and at the proper time, I deplore that the contents of my note of the 20th failed to entirely convince your excellency, and I must fully maintain the protests of my Government against the application of legislative laws Nos. 440 and 494 to British creditors. I therefore reserve for myself the right of arguing this question again at the required time. I shall duly communicate your excellency's note to my Government. RALPH PAGET. [Inclosure 13.-Translation.] The Belgian chargé d'affaires to the Guatemalan minister for foreign affairs, a BELGIAN LEGATION, Guatemala, December 17, 1901. MR. MINISTER: Referring to my notes of September 28 and October 5 last, I have the honor to ask of your excellency to favor me with the information as to the dispositions taken by the Government of Guatemala on the two following points: First, about the final resolution on the payment of the external-debt bondholders; and second, on the subject of satisfying the claims of a certain number of my cocitizens. Being compelled to send to my Government, prior to the last of this month, information upon those two particulars, I would thank very much your excellency for a reply as soon as possible. Please accept, etc., J. WOLTERS. [Inclosure 14.-Translation.] The Guatemalan minister for foreign affairs to the German minister. b OFFICE OF FOREIGN AFFAIRS, MR. MINISTER: I have had the honor to receive the esteemed note of your excellency, dated 17th instant, relative to the information you desire concerning the measures that have been taken by my Government regarding the two following points: First, upon the final dispositions tending to the payment to be made to the foreign bondholders; and second, about the canceling of other credits owed to German subjects. I feel really pleased to comply with the wishes of your excellency, stating that according to instructions sent to our representative in Europe, Dr. Fernando Cruz, corresponding steps are being duly taken toward a final agreement with the bondholders and also with the claims you have reference to. Moreover, I am able to inform you, Mr. Minister, that my Government is studying some proposals which have been submitted to it with the view of reaching the best results possible, but such business involves so complex a problem my Government is bound to have them under a serious and prolonged examination, as their high importance and the interests of the State demand; hence, the Government of Guatemala intimately hopes that the foregoing explanations, though briefly exposed, will satisfy the friendly wishes of your excellency and the Government you so deservedly represent. JUAN BARRIOS, M. I renew, etc., a Identical notes sent by legations of Great Britain, Germany, France, and Italy. Similar communications sent to legations of Great Britain, France, Belgium, and Italy, no reference being made in the latter to Italian credits, as none are claimed by that country. FR 1902, PT 1—37 No. 363.] Mr. Hay to Mr. Hunter. DEPARTMENT OF STATE, Washington, March 22, 1902. SIR: I have to acknowledge the receipt of your dispatch, No. 629, of the 26th ultimo, reporting that the Governments of Belgium, Great Britain, France, Germany, and Italy addressed a joint note to the Government of Guatemala on September 4 last regarding the failure of the Guatemalan Government to fulfill its pledges to the holders of the bonds representing the external debt of Guatemala, approximating £1,600,000 and now controlled by a committee in London. You inclose a copy of the note and of the resulting correspondence. The Department has carefully noted the contents of your dispatch and its inclosures. The fact that the European Governments named sent to the Guatemalan Government the joint note calls for no action or comment on the part of the Government of the United States, inasmuch as it is within the right of the creditor nations to require payment of debts due to their nationals. You will therefore simply keep the Department advised of the course of the negotiations on the subject and of any action taken in pursuance thereof. I am, etc., JOHN HAY. Mr. Hay to Mr. Hunter. No. 365.] DEPARTMENT OF STATE, Washington, April 10, 1902. SIR: I inclose herewith for your information a copy of a promemoria left at the Department by the German ambassador on the 3d instant, stating that the council of foreign bondholders in London which is seeking to make a new arrangement with the Government of Guatemala respecting the foreign debt of that country has suggested that the proposed arrangement ought to be acknowledged by the most interested powers-Germany, the United States, and England-in order to induce the Government of Guatemala to adhere to the new arrangement, and asking whether the Government of the United States would be inclined to join in a proceeding of the above-mentioned kind should it be adopted by the German and English Governments. I also inclose a copy of the Department's memorandum in reply, dated the 5th instant, stating that while the Government of the United States is indisposed to join in any collective act which might have the aspect of coercive pressure upon Guatemala, this Government would reserve for its citizens equal benefits with those which might be obtained for creditors of any other nationality in the adjustment of the Guatemalan foreign debt, and that you would be instructed to advise the Guatemalan Government of this attitude on the part of the United States. You will advise the Government of Guatemala of the attitude of this Government in the matter. I am, etc., a Printed, page 426. JOHN HAY. No. 373.] Mr. Hay to Mr. Bailey. DEPARTMENT OF STATE, SIR: Referring to instruction No. 365, of April 10 last, to Mr. Hunter, in relation to the new arrangement that the council of foreign bondholders in London was seeking to make with the Government of Guatemala respecting the foreign debt of Guatemala, I have now to instruct you to report to the Department the correspondence between the legation and the Guatemalan Government in pursuance of said instruction. I am, etc., JOHN HAY. No. 645.] Mr. Bailey to Mr. Hay. LEGATION OF THE UNITED STATES, SIR: I have the honor to transmit herewith inclosed, for the information of the Department, extract and translation of same which appeared in the Diario de Centro America, an official organ of this Government, on the 22d instant, giving a list of individual foreign claims that have recently been paid. Very reliable information discloses the fact that collective coercive pressure was resorted to by the respective diplomatic representatives here of England, France, Germany, and Belgium in order to bring about the payment of said claims. It appears that they as a body notified this Government that if arrangements were not made to satisfy their respective creditors on a specific date a man-of-war would take possession of each of the principal ports of the Republic of Guatemala. Although I had previously advised this Government of the attitude of the United States Government in the matter, as instructed in Department's No. 365 of April 10 last, no arrangement has yet been made to meet the just demands of American creditors. I recently, however, responded to a call from the minister of foreign affairs for a private conference, at which he expressed a very high appreciation for the friendly attitude of the Government of the United States respecting the adjustment of the Guatemalan foreign debt, and said that it is not the intention of this Government to discriminate between foreign creditors and especially against those of a friendly nation that had always demonstrated a spirit of leniency in the matter, and that the Government of Guatemala would try and satisfy the American creditors at an early date. I have, etc., JAMES G. BAILEY, Chargé d'Affairs ad interim. [Inclosure.-Translation.] List of the individual foreign claims that have been paid through their diplomatic representatives, and the amount of each draft given by the Government of Guatemala in payment of said claims, in the order indicated below. THE MINISTER OF FRANCE, HIS EXCELLENCY POURTALES GORGIER. THE MINISTER OF GERMANY, HIS EXCELLENCY DR. A. VON VOIGTS RHETZ. Francs. Marks. Pesos of Guate mala. L. Eyssen & Co 90, 207.07 56,872. 1887,916.90 THE CHARGÉ D'AFFAIRES OF ENGLAND, HON. RALPH PAGET. THE CHARGE D'AFFAIRES OF BELGIUM, HON. JOSÉ WOLTERS. |