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822.61334/176: Telegram

The Minister in Ecuador (Bading) to the Secretary of State



QUITO, May 6, 1925—4 p. m.
[Received May 7-7:30 p. m.]

15. Referring to the Department's telegram of May 4, 5 p. m., second paragraph. It is believed that the delay has been due to unsettled political conditions here and to the Ecuadorean Government's awaiting the outcome of negotiations between the association and Mr. Stabler in Guayaquil. The Legation has just learned that an agreement has been reached, Mr. Stabler reporting by telegraph May 1st that an agreement not yet signed on that date provides that Association of Agriculturists cedes to the Mercantile Bank 1,666,085 sucres being balance 66 percent tax since law of 1921 and sums collected prior to this last month and free titles to association real estate valued today at 350,000 sucres. Association deposits Banco Comercial 1,271,566 sucres being balance 34 percent tax since law of '21 same not to be withdrawn until authorized by Congress which association obligates itself to try to obtain next session (in August). Association remains in existence with reduced expenses until the end of the year so as to collect legally. It is estimated that tax should produce 1,600,000 sucres including April deposits, so bank should receive a total of from 4,800,000 to 5,000,000 sucres, approximately one million dollars.

Stabler has requested that the Department be informed of the necessity of action by Congress in order that the American Government may point out to the Ecuadorean Government the advisability of early passage of the act by Congress as the association cannot use 34 percent, amounting to 1,815,566 sucres or over one-third of the total amount involved without such authority.

Since the bank and the association apparently have reached this final settlement it is presumed that the Department will desire to await the reply of the Ecuadorean Government to the Department's last note on the subject before taking any further action. I shall again urge the Ecuadorean Minister for Foreign Affairs to send a prompt reply.


*Not printed; it instructed the Minister to endeavor to expedite reply to Department's note cabled on March 17.

'Jordan Herbert Stabler, representing the Mercantile Bank.

822.61334/175: Telegram

The Acting Secretary of State to the Minister in Ecuador (Bading)

WASHINGTON, May 9, 1925-6 p. m.

12. Department has received letter directly from Mercantile Bank of the Americas stating that a settlement has been reached substantially as given in your 15, May 6, 4 P. M.

You should, however, continue to report promptly by cable any important developments affecting this case.1o



822.00/590: Telegram

The Chargé in Ecuador (De Lambert) to the Secretary of State

GUAYAQUIL, July 10, 1925—4 p. m.

[Received July 11-5 p. m.]

28. Last night a military coup d'état headed by General Gomez de la Torre and the younger members of the Army took place in Quito, Guayaquil and other cities of Ecuador. President Cordova and all the members of the Cabinet together with some other individuals are being held under guard in their homes. All is quiet here and present indications are that there will be no bloodshed or public disorder.

The triumvirate at present in charge is made up of General Gomez de la Torre, Señor Luis Napoleon Dillon and Jose Rafael Bustamente and it seems others will be asked to join the new government today or tomorrow. They seem to have the situation well under control but as all telegraphic communication is being controlled we have no information as to conditions outside of the Capital today. So far as we have been able to learn all Americans in Ecuador are safe and no American interests are endangered.


822.00/590: Telegram

The Secretary of State to the Chargé in Ecuador (De Lambert)

WASHINGTON, July 14, 1925—4 p. m.

19. Your 28, July 10, 4 p. m. Pending crystalization of present political situation you are instructed carefully to avoid any action

10 On May 18, 4 p. m., the Minister informed the Department that an agreement between the Mercantile Bank and the Association of Agriculturists had been signed on May 15 (file No. 822.61334/178).

which might be construed as recognition of the regime actually functioning in Ecuador. Communication with the de facto authorities should be friendly but personal and strictly informal omitting use of titles such as Minister for Foreign Affairs, etc.


702.2211/57: Telegram

The Secretary of State to the Chargé in Ecuador (De Lambert)

WASHINGTON, July 28, 1925-2 p. m.

25. Your 33, July 21, 11 a. m.11 While Department can not issue exequaturs to consular officers holding commissions from an unrecognized regime it would be disposed at the request of the Ecuadoran Legation to permit Consular officers appointed by the authorities now functioning in Ecuador to carry on their duties provisionally without exequaturs.12



The Secretary of State to the Ecuadoran Chargé (Barberis)

WASHINGTON, July 29, 1925. SIR: Acknowledgement is made of the receipt of Mr. Ochoa's note of July 20, 1925,13 by which he advised me that, owing to events which have recently taken place in his country, he had tendered his resignation of the office of Envoy Extraordinary and Minister Plenipotentiary of Ecuador to the United States; that his resignation had been accepted by the Government Board constituted in consequence of the events referred to; and that he had turned over the affairs of the Legation to you in the capacity of Chargé d'Affaires ad interim.

While it is not the intention of this Department to discontinue the transaction of business with the Legation, I desire to state, in order to avoid misapprehension, that it should be understood that this Department's action in so doing is not to be construed as a recognition by this Government of the régime now functioning in Ecuador as other than the de facto authorities in control of the administration of Ecuador. Accept [etc.] FRANK B. KELLOGG

"Not printed; the Chargé reported among other matters that the regime in Ecuador had requested him to ascertain if the United States would grant exequaturs to new Ecuadoran consular officers (file No. 822.00/596).

Subsequently the regime in Ecuador appointed Señor de Ycaza to be consu general at New York, and he was permitted to carry on his duties (file No. 702.2211/59).

"Not printed.




611.60 i 31/5a


The Secretary of State to the Estonian Minister (Piip) 1

WASHINGTON, March 2, 1925.

SIR: I have the honor to make the following statement of my understanding of the agreement reached through recent conversations held at Washington on behalf of the Government of the United States and the Government of the Republic of Esthonia with reference to the treatment which the United States shall accord to the commerce of Esthonia and which Esthonia shall accord to the commerce of the United States.

These conversations have disclosed a mutual understanding between the two Governments which is that, in respect to import, export and other duties and charges affecting commerce, as well as in respect to transit, warehousing and other facilities and the treatment of commercial travelers' samples, the United States will accord to Esthonia and Esthonia will accord to the United States, its territories and possessions, unconditional most-favored-nation treatment; and that in the matter of licensing or prohibitions of imports or exports, the United States and Esthonia, respectively, so far as they at any time maintain such a system, will accord to the commerce of the other treatment as favorable, with respect to commodities, valuations and quantities, as may be accorded to the commerce of any other country. It is understood that

No higher or other duties shall be imposed on the importation into or disposition in the United States, its territories or possessions, of any articles the produce or manufacture of Esthonia than are or shall be payable on like articles the produce or manufacture of any foreign country:

No higher or other duties shall be imposed on the importation into or disposition in Esthonia of any articles the produce or manufac

'The draft for an exchange of notes regarding reciprocal unconditional mostfavored-nation treatment was submitted to the Estonian Legation on Feb. 5, 1925, and was accepted, as here printed, by the Estonian Government after minor changes.

ture of the United States, its territories or possessions, than are or shall be payable on like articles the produce or manufacture of any foreign country:

Similarly, no higher or other duties shall be imposed in the United States, its territories or possessions, or in Esthonia on the exportation of any articles to the other or to any territory or possession of the other, than are payable on the exportation of like articles to any foreign country:

Every concession with respect to any duty, charge or regulation affecting commerce now accorded or that may hereafter be accorded by the United States or by Esthonia, by law, proclamation, decree or commercial treaty or agreement, to any foreign country will become immediately applicable without request and without compensation to the commerce of Esthonia and of the United States and its territories and possessions, respectively.

Provided that this understanding does not relate to

(1) The treatment which the United States accords or may hereafter accord to the commerce of Cuba or any of the territories or possessions of the United States or the Panama Canal Zone, or to the treatment which is or may hereafter be accorded to the commerce of the United States with any of its territories or possessions or to the commerce of its territories or possessions with one another.

(2) The treatment which Esthonia accords or may hereafter accord to the commerce of Finland, Latvia, Lithuania, Russia, and/or to the states in custom or economic union with Esthonia, or to all of those states, so long as such special treatment is not accorded to any other state.

(3) Prohibitions or restrictions of a sanitary character or designed to protect human, animal or plant life or regulations for the enforcement of police or revenue laws.

The present arrangement shall become operative on the day when the ratification of the present note by the Esthonian Parliament will be notified to the Government of the United States and, unless sooner terminated by mutual agreement shall continue in force until thirty days after notice of its termination shall have been given by either party; but should either party be prevented by future action of its legislature from carrying out the terms of this arrangement, the obligations thereof shall thereupon lapse.

I shall be glad to have your confirmation of the accord thus reached. CHARLES E. HUGHES

Accept [etc.]

126127-40-vol. II-10

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