File No. 715.1715/55 The Secretary of State to the Chargé in Honduras (Curtis)1 [Telegram] WASHINGTON, August 28, 1918, 6 p. m. Department's August 21, noon [11 p. m.]. Your August 22, 2 p. m. I have received with much satisfaction your telegram announcing the acceptance by the Honduran Government of the offer of this Government to use its good offices. The Government of Nicaragua has also accepted offer of its good offices made by this Government and has agreed to the withdrawal of all troops and police into the zone occupied by them previous to May 20, 1918. You are directed to urge emphatically that no Honduran patrols, forest inspectors, or rural guards proceed further than the zone occupied by them on May 20, 1918. You may suggest that the Honduran Government designate at an early date the representative who is to confer with the Department and with the representative of Nicaragua. Ascertain by telegraph from the Legation at Managua the date of the departure for Washington of the Nicaraguan representative. LANSING File No. 715.1715/62 The Chargé in Honduras (Curtis) to the Secretary of State [Telegram] TEGUCIGALPA, September 2, 1918, 5 p. m. Your August 28, 6 p. m. The Honduran representative will be Bonilla, Honduran envoy extraordinary and minister plenipotentiary on special mission now in the United States. Documents, etc., will probably be sent by next mail. CURTIS File No. 715.1715/66 The Minister in Nicaragua (Jefferson) to the Secretary of State [Telegram] MANAGUA, September 11, 1918, 3 p. m. Nicaraguan Minister at Washington has been appointed Nicaraguan representative in Nicaraguan-Honduran boundary question, and Adolfo Cardenas of Managua will be sent in the capacity of engineer and secretary. Copy sent to American Legation Tegucigalpa. JEFFERSON 'The same, mutatis mutandis, on the same date, to the Minister in Nicaragua. ARGENTINA CABLE-LANDING CONCESSIONS GRANTED BY ARGENTINA TO THE CENTRAL & SOUTH AMERICAN TELEGRAPH CO. (AN AMERICAN COMPANY)1 File No. 835.73/66 The President of the Central & South American Telegraph Co. (James A. Scrymser) to the Secretary of State [Memorandum-Extracts] NEW YORK, September 23, 1916. Through the powerful influence of the Department of State and the American Ambassador to Brazil, the Central & South American Telegraph Co. expects shortly to conclude its contract with the Government of Brazil, for the laying of two separate cables between Buenos Aires, the company's present terminal, and the cities of Santos and Rio de Janeiro in Brazil, and thus provide an Americanowned cable connection from the United States to the Republic of Brazil. Taking it for granted that no serious obstacle will be met with at the Brazilian end, the establishment of the first means of a direct all-American telegraph communication between the United States and Brazil depends solely upon the successful negotiation of an agreement between this company and the Government of Argentina for the laying of two separate cables between Argentina and Brazil, one to land at Santos and the other at the city of Rio de Janeiro, in accordance with the landing rights which the Brazilian Government contemplates granting to the Central & South American Telegraph Co. By a concession granted by the Argentine Government in 1885, when it was supposed that one cable between Argentina and Brazil would be amply sufficient, the Central & South American Telegraph Co. was authorized to "establish a cable from the coast of Brazil to the capital of the Republic." The decree in full is attached. This concession was granted absolutely without limitation as to time, and the fact that it exists in the archives of the Department of State should be a sufficient guarantee of its validity. On June 3, 1909, the Argentine Government granted to the Western Telegraph Co., Ltd., the British corporation heretofore alluded to, a concession for the laying of a submarine cable between the island of Ascension and the Argentine Republic. This concession of 1909 contained no reference to the prior and still existing concession of 1885 held by the Central & South American Telegraph Co., and yet Article 17 of the 1909 concession pro 'See also Brazil, post, p. 45, vides a preferential right for the Western Telegraph Co. which is almost identical to that of the Brazilian concession 30, 1893. of June In connection with our concession of 1885, I attach a copy of a telegram received from our manager in the city of Buenos Aires, Mr. Hussey, dated September 21.1 By noting this telegram you will see that the Director General of Telegraphs of Argentina intimates that our concession of 1885 "has been abandoned." It is quite apparent that the Western Telegraph Co., realizing that the decision of the Supreme Court of Brazil will be in favor of the American company, has now entered into negotiations with the Director General of Telegraphs of Argentina to cancel our contract rights and, in fact, prohibit American cable communication to be established with Brazil, as there is every probability that Brazil will authorize it to do shortly. Undoubtedly the Brazilian Government is anxious to have the three Americas connected telegraphically and is particularly anxious for the establishment of cable communication with the United States by means of an American-owned cable. If the Brazilian Government had thought otherwise it would not have backed our claims with reference to Brazilian rights and would have supported the continuation of the present English monopoly. The Central & South American Telegraph Co. could not carry out the provisions of the 1885 concession granted by Argentina until the English monopoly was removed and this company was permitted to enter Brazil. This being the situation, I have to ask that the Honorable Secretary of State will instruct the American Embassy at Buenos Aires to endeavor to secure respect for the contract of 1885, as it was through no fault of this company that the said concession did not become operative. Furthermore, I respectfully request that, in obtaining the said confirmation, the Embassy should endeavor to secure permission to alter the word "cable" in the existing concession to the word cables". 66 Respectfully submitted, [Enclosure Translation] JAMES A. SCRYMSER Cable concession issued by the Department of the Interior of Argentina to the Central & South American Telegraph Co. BUENOS AIRES, June 22, 1885. In view of the papers presented by his excellency the resident Minister of the United States, Gen. D. Thomas O. Osborn, in communicating the proposal of the "Central & South American Telegraph Co." to establish a cable from the coast of Brazil to the Capital of the Republic, which proposal has been recommended by the Government of the United States and in accordance with the reports of the Director General of Posts and Telegraphs: 1st. That the establishment of the cable would be advantageous for the public service; 2d. That the concession solicited in regard to national lands for the line, and right of expropriating private lands which might be necessary, are provided for and granted under the national telegraph law of October 7, 1875. 'Not printed. It is resolved: 1st. To concede to the "Central & South American Telegraph Co." the right to establish a telegraph cable to the Capital of the Republic subject to the regulations of the law mentioned and to the regular jurisdiction of the nation. 2d. Communicate, publish and insert in the National Register and pass to the Department of Foreign Relations to take effect. ROCA The Secretary of State to the Chargé in Argentina (De Billier) [Telegram-Extract] WASHINGTON, September 28, 1916, 4 p. m. After immediate careful review of records relative thereto, consult Manager Hussey of the Central & South American Telegraph Co. regarding latest contention of Argentine Director General of Telegraphs relative to annulment of company's concession of June 22, 1885, and thereupon reiterate to the Argentine Government the desire of this Government that the contract be respected and remind them of the value that it attaches to this important factor in the union of the continents. If necessary communicate and cooperate by cable with Embassy at Rio de Janeiro. LANSING File No. 835.73/69 The Chargé in Argentina (De Billier) to the Secretary of State [Telegram] BUENOS AIRES, October 6, 1916, noon. Department's September 28, 4 p. m. No menace to the life of the concession by present administration. Will suggest by next mail what course the telegraph company should probably pursue. DE BILLIER File No. 835.73/70 The Chargé in Argentina (De Billier) to the Secretary of State No. 288 [Extract] BUENOS AIRES, October 9, 1916. SIR: Referring to the Department's telegraphic instruction dated September 28 ultimo and to the Embassy's telegraphic despatch. dated October 6 ultimo, I have the honor to report that an Executive decree dated July 19 last and published in the Official Bulletin July 21 ordered the departmental divisions of the administration to report within thirty days on the actual status of concessions to individuals, corporations and private companies. The object of this decree was apparently to ascertain what funds deposited as a forfeit by concessionaires had lapsed to the Government by limitation. This decree appeared to the local agent of the Central & South American Telegraph Co., Mr. Hussey, to contain an element of danger to his company's concession of June 22, 1885. In conformity with the Department's subsequent instruction I took up the matter with the Minister for Foreign Affairs by note and orally and further spoke to Doctor Aldao. . While it may be safely concluded that no action adverse to the concession will be taken now, it will be seen from the opinion of Doctor Aldao, which with translation is enclosed herewith, that the telegraph company would probably do well to take some step looking to a renewal of the concession which would contain certain stipulations as to its termination in default of active preparations for the laying of the cables contemplated. I have [etc.] [Enclosure-Translation] FREDERIC DE BILLIER Aldao, Campos & del Valle to the Chargé in Argentina (De Billier) October 4, 1916. DEAR SIR: In compliance with the request which you were pleased to make of us we examined the facts in the matter relating to the Central & South American Telegraph Co. The concession granted to the aforesaid company by the decree of June 22, 1885, is perfectly legal, since it was established by means of a decree of the Executive power of the nation dictated in accordance with the prerogatives conferred by Article 4 of the law of national telegraphs of October 7, 1875. As we are aware, this concession is in force; but we believe that the Executive power could annul it at will, on account of its not having been used during the 31 years which have elapsed since it was granted. Therefore we point out that it would not be wise to rely upon the validity of the concession in future while no use is being made of it, but that it would be advisable to apply to the Executive power for a new decree, which could be obtained if the company is in position to announce that it will lay the contemplated cable within a reasonable period of time. If, as you state is expected here, the existing difficulties in Brazil will be obviated within a few weeks, the opportunity will have arrived for the company to attempt to obtain from the Executive power the confirmation of the said concession. Until these difficulties are removed, we think that it will not prove difficult to arrange to have the status quo of the concession maintained for a certain time, in view of the fact that the validity of the concession can not be questioned so long as the Executive power does not cancel it as a result of its not having been used during the long period of time which has elapsed since it was granted. We consider, moreover, that it would not be difficult to arrange with the Executive power that before the concession were canceled, the company be allowed a certain time to make use of it, under penalty of cancelation if within the time so fixed the company fail to have constructed or have begun to construct the cable in question. As you know, the present term of the Executive power ends the 12th instant, and, on this account, it is absolutely certain that some time will elapse before the new government will be able to turn its attention to this matter. Yours [etc.] ALDAO, CAMPOS & DEL VALLE By R. C. A. File No. 835.73/71 The Ambassador in Argentina (Stimson) to the Secretary of State No. 324 BUENOS AIRES, February 9, 1917. SIR: Referring to my previous correspondence, and particularly to my despatch No. 288, of October 9, 1916, I have the honor to report that I have taken occasion to impress upon the local manager of the Central & South American Telegraph Co. the advisability of his |