in respect to the claim of G. Amsinck and Company and other interested Americans. I am [etc.] For the Secretary of State: F. M. DEARING 422.11Am8/27 : Telegram The Minister in Ecuador (Hartman) to the Secretory of State [Paraphrase] QUITO, February 15, 1922—3 p.m. 4. Department's telegram no. 2, February 7, 1922, 1 p.m. The President has replied as follows: "The statute in question has no retroactive effect in Ecuadoran law. Therefore, (1) drafts which were unpaid when the decree fixing the rate of 3.60 was issued must be paid at that rate no matter when they were due; (2) holders of drafts who received payment at 2.60 before the said decree was issued can not now demand the difference between 2.60 and 3.60." The President in a subsequent interview stated clearly that the decree applies to payments under contracts which were made before the first regulating decree of January, 1918, was issued. He declared emphatically, however, that the Government neither intended nor desired to defraud foreign creditors, but that the decree's sole object was the checking of speculation. He added that there are not sufficient drafts available at any rate at present, and urged that American creditors allow their Ecuadoran debtors, as an evidence of good faith, to deposit sufficient sucres in banks to cover drafts at official rate of exchange, and that the deposits be allowed to accumulate until sufficient drafts are available. He expects the improvement in the cacao market will shortly bring this situation about; the commercial rate of exchange has fallen recently from 4.30 to 4.05. I am sending a full report by mail." HARTMAN 422.11Am8/27 : Telegram The Acting Secretary of State to the Minister in Ecuador (Hartman) WASHINGTON, March 1, 1922-4 p.m. 6. Your 4, February 15, 3 p.m. You will appropriately and clearly inform the Government formally in writing that: 'Not printed. 1. This Government has received several specific complaints from American citizens concerning the damages with which they are threatened by reason of the action of the Government of Ecuador in fixing an arbitrary and retroactive rate of exchange. 2. This Government has taken due note of the statements of the President of Ecuador with respect to the purposes and motives of his government in taking said action. 3. This Government insists upon observation of the principle that a foreign government cannot by any act, properly prevent American citizens from exercising rights acquired by them under existing contracts entered into in good faith prior to the date of such action. 4. Therefore, in case the Government of Ecuador considers it necessary for reasons of its own to maintain its reported policy with respect to exchange rates, it is to be understood that the Government of the United States reserves the right to give diplomatic support to claims of American citizens who shall have suffered financial loss by reason of having been unable to collect the full amount of monies due them as a result of such policy. FLETCHER 422.11Am8/36: Telegram The Minister in Ecuador (Hartman) to the Secretary of State QUITO, March 13, 1922-3 p.m. 9 8. Department's 6, March 1, 4 p.m. Ecuadorean Government in reply reiterates statements contained in my despatch number 767 [761?] December 1st and adds diplomatic intervention only justified in case of judicial denial of justice. Full report by mail.10 HARTMAN 422.11Am8/39 The Consul General at Guayaquil (Goding) to the Secretary of State No. 790 [Extract] GUAYAQUIL, April 25, 1922. SIR: I have the honor to inform you that the indebtedness of the Municipality of Guayaquil to Amsinck & Company of New York has been settled, and the money therefor is deposited in the bank to the credit of that house. I have [etc.] Foreign Relations, 1921, vol. 1, p. 875. 10 Not printed. FREDERIC W. GODING EGYPT RECOGNITION BY THE UNITED STATES OF THE INDEPENDENCE OF EGYPT 883.00/403 The British Ambassador (Geddes) to the Secretary of State No. 194 WASHINGTON, March 16, 1922. SIR: I have the honour to inform you, on instructions from my Government, that it has been decided by His Majesty's Government, with the approval of Parliament, to terminate the Protectorate declared over Egypt on December 18th, 1914, and to recognise her as an Independent Sovereign State. In bringing this matter to your attention, I am instructed to communicate to you the following notification. When the peace and prosperity of Egypt were menaced in December 1914 by the intervention of Turkey in the Great War in alliance with the Central Powers, His Majesty's Government terminated the suzerainty of Turkey over Egypt, took the country under their protection and declared it to be a British Protectorate. The situation is now changed. Egypt has emerged from the war prosperous and unscathed and His Majesty's Government, after grave consideration and in accordance with their traditional policy, have decided to terminate the Protectorate by a declaration in which they recognise Egypt as an Independent Sovereign State while preserving for future agreements between Egypt and themselves certain matters in which the interests and obligations of the British Empire are specially involved. Pending such agreements, the status quo as regards these matters will remain unchanged. The Egyptian Government will be at liberty to re-establish a Ministry for Foreign Affairs and thus to prepare the way for the diplomatic and consular representation of Egypt abroad. Great Britain will not, in future, accord protection to Egyptians in foreign countries except in so far as may be desired by the Egyptian Government and pending the representation of Egypt in the country concerned. The termination of British protection over Egypt involves, however, no change in the status quo as regards the position of other Powers in Egypt itself. The welfare and integrity of Egypt are necessary to the peace and safety of the British Empire which will therefore always maintain, as an essential British interest, the special relations between it self and Egypt long recognised by other Governments. These special relations are defined in the declaration recognising Egypt as an Independent Sovereign State. His Majesty's Government have laid them down as matters in which the rights and interests of the British Empire are vitally involved and will not admit them to be questioned or discussed by any other Powers. In pursuance of this principle, which they hereby declare to all Powers, they will regard as an unfriendly act any attempt at interference in the affairs of Egypt by another Power and they will consider any aggression against the territory of Egypt as an act to be repelled with all means at their command. I have [etc.] (For the Ambassador) 883.00/409: Telegram The Agent and Consul General at Cairo (Howell) to the Secretary of State CAIRO, March 27, 1922—noon. [Received March 27-11: 20 a.m.] 15. Your number 5 March 20, 4 p.m.1 After Great Britain declared Egypt independent and removed protectorate Allenby Minister of Foreign Affairs officially notified diplomatic agents that all foreign matters should be taken up with Egyptian Minister of Foreign Affairs Sarwat. Would communications thus addressed be regarded recognition of Egypt's sovereignty? HOWELL 883.01/- Telegram The Secretary of State to the Agent and Consul General at Cairo (Howell) WASHINGTON, March 28, 1922-7 p.m. 7. Your 15, March 27, noon. Such intercourse with the Egyptian Government as is essential for the conduct of the affairs of the Agency should be informal so as to avoid giving impression of recognition. You will refrain from discussion of the subject of recognition. Cable what Powers, if any, have officially recognized Egyptian Government and what steps to that end have been taken by them. 'Not printed. HUGHES 883.01/11a The Secretary of State to the British Ambassador (Geddes) WASHINGTON, April 25, 1922. EXCELLENCY: I have the honor to acknowledge the receipt of a note, dated March 16, 1922, from His Britannic Majesty's Embassy, informing me that the British Government had decided to terminate the protectorate over Egypt, while reserving for future agreement certain matters in which the interests and obligations of the Empire were considered to be especially involved. It was further stated that the termination of the protectorate involved no change in the status quo as regards the position of other powers in Egypt. My Government has therefore decided to recognize the independence of Egypt. Instructions in this sense are being sent to the American representative in Cairo, who is being further requested to bring to the attention of the Minister for Foreign Affairs that this recognition is subject to the maintenance of the rights of the United States in Egypt, as they have hitherto existed. Accept [etc.] CHARLES E. HUGHES 883.01/10a: Telegram The Secretary of State to the Agent and Consul General at Cairo (Howell) WASHINGTON, April 25, 1922-2 p.m. 9. Communicate a note to the Egyptian Minister for Foreign Affairs textually as follows: "I take pleasure in informing Your Excellency that the President has decided to recognize the independence of Egypt this recognition being subject to the maintenance of the rights of the United States of America as they have hitherto existed." The qualification above stated is intended to leave no room for doubt of the maintenance of capitulatory and commercial rights and mostfavored nation treatment of the United States. The Department is notifying British Government of its action and the President will telegraph a congratulatory message to the King and I will send telegram to Minister for Foreign Affairs. Congress has been requested to provide appropriation for raising Agency to Legation. Telegraph immediately when you have made above communication to Egyptian Government and their reply if any. HUGHES |