establishing civil liability for injuries or for death; and to Article XXV of the same treaty conferring upon consular officers the right to receive on behalf of their non-resident countrymen distributive shares derived from estates in process of probate or accruing under the provisions of so-called Workmen's Compensation Laws, or other like statutes. Such provisions have already been agreed upon for inclusion in the Treaty of Friendship, Commerce and Consular Rights between the United States and Austria, the negotiation of which is nearing conclusion at Vienna.19 BOLIVIA GOOD OFFICES OF THE DEPARTMENT OF STATE IN BEHALF OF THE STANDARD OIL COMPANY IN ESTABLISHING RADIO STATION AT YACUIBA 824.74 Standard Oil Co./1: Telegram The Acting Secretary of State to the Minister in Bolivia (Kaufman) WASHINGTON, June 12, 1928-2 p. m. 12. Representative of Standard Oil Company states that that Company is requesting permission from the Bolivian Government to establish a radio station at Yacuiba for communication with its home office in New York, and has asked for the assignment of short wave channels. The United States Federal Radio Commission has already assigned short wave channels for this circuit. You may informally advise the Minister for Foreign Affairs that the Department would be glad to see this additional channel of communication established between Bolivia and the United States, feeling that it would serve to draw the two nations closer together and strengthen their mutual interests. This of course with the understanding that the privileges granted to the Sandard Oil Company should not infringe upon the rights of any other American interests. OLDS 824.74 Standard Oil Co./4: Telegram The Minister in Bolivia (Kaufman) to the Secretary of State La Paz, August 24, 1928—noon. 38. Department's telegram No. 12, June 13th. [12th]. Executive decree authorizing Standard Oil Company of Bolivia to construct wireless telegraph station at Yacuiba signed on August 23rd. KAUFMAN BOUNDARY DISPUTE WITH PARAGUAY (See pages 672 ff.) 1 Standard Oil Company of New Jersey. 1018 BRAZIL DISAPPROVAL BY THE DEPARTMENT OF STATE OF PROPOSED REFUNDING IN THE AMERICAN MARKET OF STATE OF SÃO PAULO LOAN OF 19261 832.51 Sa 6/93 Mr. Andrew Ten Eyck, for E. H. Rollins & Sons, New York, to the Secretary of State [WASHINGTON,] February 2, 1928. MEMORANDUM FOR THE SECRETARY OF STATE: In accordance with the suggestion of the Secretary of State at a conference this morning I reduce to writing the following inquiry on behalf of the investment bond house of E. H. Rollins & Sons of 44 Wall Street, New York City: In 1926 the State of Sao Paulo, Brazil, brought out a £5,000,000, 7% loan in London. This loan was brought out through the Sao Paulo Coffee Institute by Lazard Brothers, and was specifically secured by a first charge and receipt of transport tax of one gold milreis on each bag of coffee, and by all the assets of the Institute above mentioned. This issue was brought to the attention of E. H. Rollins & Sons and discussed with the Secretary of Commerce, Mr. Hoover, but was not offered in this market due to his opposition to the nature of the business, involving as it seemed apparent to him, the financing of a monopoly, which might have had the tendency of raising the price of coffee to the American consumer. This loan has been very successful in London and the bonds are now selling above par. E. H. Rollins & Sons would like to consider the possibility of calling the present issue in London and bringing out a dollar issue in the American market, provided of course the situation would be such that the government would not object to the financing. The call and refunding operation would not involve any new money, nor would it change the actual existing situation as far as coffee is concerned. At the present time it would be possible for E. H. Rollins & Sons to do this business at probably a more favorable rate than that current in London, thereby showing a distinct advantage to the State of Sao Paulo. The Secretary of Commerce has advised the undersigned to present the matter to the Secretary of State for appropriate consideration. For previous disapproval by the Department of State of the proposed flotation of this loan by American bankers, see Foreign Relations, 1925, vol. 1, pp. 533 ff. and conference with the departments of the government concerned, because of recent developments with regard to American financing operations in Brazil to the end that the matter may be presented to the President. It is respectfully requested that specific approval be given to the call and refunding operation above set forth. ANDREW TEN EYCK 832.51 Sa 6/98 The Secretary of State to Mr. Andrew Ten Eyck, for E. H. Rollins & Sons, New York WASHINGTON, February 16, 1928. SIR: I beg to refer to your memorandum of February 2, 1928, in regard to possible refunding in the American market of the loan of the State of Sao Paulo, Brazil, which was brought out in London in 1926 through the Sao Paulo Coffee Institute. After careful consideration, the conclusion has been reached that there is no change in the situation which would warrant modification at this time of the position taken by this Government prior to the flotation of the loan of 1926, namely, that the issue in the American market of a loan in connection with coffee valorization would not be viewed with favor. I am [etc.] For the Secretary of State: REFUSAL OF THE DEPARTMENT OF STATE TO DISAPPROVE LOAN TO STATE OF SÃO PAULO BECAUSE OF CLAIM OF AMERICAN FIRM AGAINST STATE 832.51 Sa 6/101: Telegram The Acting Secretary of State to the Consul at São Paulo (Cameron) WASHINGTON, March 29, 1928–5 p. m. The Department has been approached by representatives of Baker, Kellogg and Company and Ulen and Company with regard to the failure of the Government of São Paulo to deliver an issue of vicinal bonds to the Itararé-Fartura Railroad which were assigned by the latter to the American interests mentioned as security for an advance of about $380,000 made to the railroad company. It is alleged that as security for the bonds not yet delivered the Government has taken a mortgage on the railroad. American interests consider it unjust for the Government to refuse delivery of the bonds on the ground of the Company's failure to meet certain financial requirements when such failure is caused by the Government's refusal to deliver the bonds. The American interests have not exhausted their legal remedies, or even taken the case into court, feeling that such procedure would entail great delay and expense which should not be necessary under the circumstances. They have asked the Department to use its informal good offices in an endeavor to persuade the Government of São Paulo to settle the case. Consult with Mr. Ralph D. Kellogg, now at São Paulo, and if you see no objection discuss the matter informally with the appropriate authorities, expressing the hope that a solution mutually satisfactory to the Government and the American interests concerned may be reached in the near future. Endeavor to ascertain definitely the reason for the state's refusal to deliver the bonds. Report briefly by cable and fully by mail. OLDS 832.51 Sa 6/102: Telegram The Consul at São Paulo (Cameron) to the Secretary of State SÃO PAULO, April 2, 1928—3 p. m. Department's telegram March 29, 5 p. m. I have consulted with Kellogg and Whitson, latter being the representative of Ulen and Company. On March 31st I called on the State Secretary of Fazenda and discussed the matter informally expressing the hope suggested in Department's telegram March 29, 5 p. m. Secretary stated as follows: bonds have not been issued because the State has been judicially notified by another creditor that bonds should be delivered to him. The matter is now being studied by State's legal adviser. Such creditor is Lafayette Siqueira and Company, contractor, who constructed portion of Itararé-Fartura line. About a week ago State authorities answered a telegram from the Foreign Office at Rio de Janeiro regarding the same matter. State Government has had no dealings with Baker, Kellogg and Company or with Ulen and Company, and State government believes claim of those companies to be solely against Itararé-Fartura Railway Company. Latter company has numerous bills protested and may soon be forced into bankruptcy. For partial explanation of this case see my report of March 23rd entitled "Aid to [Neighborhood] Railways" in the mail pouch scheduled to arrive at New York on April 10th. Full report by mail pouch scheduled to arrive at New York on April 24th. CAMERON 'Not printed. 3 |