File No. 835.73/83 The Ambassador in Argentina (Stimson) to the Secretary of State [Telegram] BUENOS AIRES, October 28, 1918, 1 p. m. My April 9, 5 p. m. On October 23 the President finally signed a decree which bears the date of August 1, authorizing the Central & South American Telegraph Co. to lay one or more cables between Argentina and Uruguay. The decree was signed in accordance with the recommendations of both Attorneys General of the nation, who declared the authorization to infringe upon no existing concessions, and notwithstanding the bitter opposition of the Western Telegraph Co. STIMSON BRAZIL CABLE-LANDING CONCESSIONS GRANTED BY BRAZIL TO THE CENTRAL & SOUTH AMERICAN CO. AND THE WESTERN UNION TELEGRAPH CO. (AMERICAN COMPANIES) AND TO THE WESTERN TELEGRAPH CO. (A BRITISH COMPANY)'—DISCRIMINATION IN CABLE RATES File No. 832.73/101 The Chargé in Brazil (Benson) to the Secretary of State No. 878 [Extract] RIO DE JANEIRO, March 20, 1917. SIR: In continuation of previous correspondence on the general subject of the projected extension of American-owned submarine cables to the coast of Brazil (specifically those of the Central & South American Telegraph Co., which it is hoped may soon be laid to Rio de Janeiro and to Santos from Buenos Aires), I now have the honor to report recent developments in the matter under consideration have resulted in bringing about the following situation: Every legal impediment to the granting of the desired cable concession by the Government of Brazil to the Central & South American Telegraph Co. has now been removed as a direct result of the company's continuous and untiring efforts extending over a number of years. The Western Telegraph Co. has been legally defeated on the merits of the case, and will leave no stone unturned in its evident determination to prevent, if possible, the landing of American cables on the coast of Brazil. The American company will naturally continue to seek support and aid through the good offices of this Embassy whenever an opportune moment may develop itself, and I trust that this mission may be permitted to continue in its previous policy of supporting and furthering the aims of that company. When it became evident that the Brazilian Government would be obliged (as a result of representations by the Central & South American Telegraph Co., which were supported by intelligent editorial propaganda in the local press) to force the Western Telegraph Co., in view of the international regulations, to accept messages addressed to the United States via Galveston or via Colon, the Western was successful in negotiating with the Government an agreement whereby a "special, uniform" rate of three francs per word shall be collected on all such telegrams to the United States in payment for transmission from any station in Brazil (regardless of zones) to Buenos Aires. Ordinarily, in so far as concerns the transmission of telegrams from this country to Buenos Aires, Brazil is divided into two zones, north and south. The southern zone embraces the Federal Capital, the States of Rio de Janeiro and São Paulo, and all territory to the south thereof; and the northern zone, all territory to the north. The southern zone furnishes fully 80 per cent of all the foreign traffic. The normal rates in force over the Western's cables to Buenos Aires are fr. 1.75 per word on all service originating in the southern zone of Brazil, and fr. 2.75 when originating in the northern zone. These original normal rates (fr. 1.75 and fr. 2.75) between Brazil and Buenos Aires will, in accordance with the new agreement referred to, be applied to all telegrams to any American republic south of Mexico. On the other hand, the "special, uniform" rate of three francs per word will be applied to all messages addressed to any point in North America, i. e., the United States, Canada, and Mexico. Thus, the mere fact that a telegram is addressed to the United States, or to Canada, or to Mexico, and not to some South or Central American country, will incur upon the sender thereof the burden of a surtax of fr. 1.25, or 25 centimes per word, depending upon whether the messages originate in the southern or the northern zone of Brazil. It must be borne in mind that, in any event, the service performed by the Western Telegraph Co. or by the Brazilian Department of Telegraphs (or by both in conjunction, when the messages pass over the lines of the two administrations) is precisely the same, whether messages be addressed to the United States or to any other country. This measure, recently adopted, which will go into effect on April 1, 1917, would appear to present a clear case of discrimination against American interests. If this new rate of three francs per word were to be applied to all messages originating in Brazil and addressed to points beyond Buenos Aires, the treatment accorded to each and every country of the two continents would be equal, and no specific cause for complaint could be found, except that of considering the measure as a rather erratic arrangement. I have [etc.] ALEXANDER BENSON File No. 835.73/44 The Secretary of State to the Chargé in Brazil (Benson) [Telegram] WASHINGTON, March 22, 1917, 4 p. m. You are instructed to bring the following to the attention of the Brazilian Government: The American Government on account of its belief that it is the desire of Brazil to facilitate telegraphic communication between Brazil and the United States would be glad if the Brazilian Government would find a method of modifying the decision. published in the Official Gazette of February 18, which amounts practically to a discrimination against telegrams exchanged between the United States and Brazil and therefore leaves these telegrams in an unfavorable position in contrast with telegrams exchanged between Brazil and other foreign countries. The Government of the United States recognizes that Brazil is somewhat hampered by her arrangements with the Western Telegraph Co. but in spite of that it hopes that unfavorable discrimination against telegrams to the United States may be removed since it is a matter in which our people may be interested. LANSING File No. 835.73/48 The Chargé in Brazil (Benson) to the Secretary of State No. 898 RIO DE JANEIRO, April 10, 1917. SIR: With reference to the Department's telegraphic instruction of March 22, 4 p. m., I have the honor to report that on March 23 this Embassy sent a note to the Foreign Office in which (referring to the decision published in the Official Gazette of February 18) it was stated that the Government of the United States would be glad if the Brazilian Government would find a method of modifying the above decision which amounts practically to a discrimination against the telegrams exchanged between the United States and Brazil. This Embassy has to-day received a note from the Minister for Foreign Affairs, dated April 9, 1917, saying that the Embassy's communication of March 23 has been submitted to the consideration of the Minister of Public Works, whose reply will be transmitted to this Embassy when received by the Foreign Office. I have [etc.] ALEXANDER BENSON File No. 832.73/101 The Secretary of State to the Chargé in Brazil (Benson) [Telegram] WASHINGTON, April 14, 1917, 6 p. m. Referring to Embassy's despatch No. 878, March 20, and Department's telegram of March 22, 4 p. m., Department desires to learn by cable what progress is being made in solution of difficulty referred to therein. LANSING File No. 832.73/106 The President of the Western Union Telegraph Co. (Newcomb Carlton) to the Secretary of State NEW YORK, July 13, 1917. DEAR MR. SECRETARY: As your Department, through Counselor Polk, was some time ago advised, it is the earnest desire of this company to secure from the Government of Brazil an arrangement whereby a direct means of communication by telegraph and cable can be established between that country and the United States. In pursuance of this, we are about to send a representative to Brazil, and I am writing to respectfully request the good offices and assistance of the Department of State in behalf of the enterprise. We are considering the appointment of Mr. Nelson O'Shaughnessy, and we would be happy to be advised if the Department of State will endorse our efforts through that representative. Faithfully yours, NEWCOMB CARLTON The Secretary of State to the President of the Western Union Telegraph Co. (Newcomb Carlton) WASHINGTON, July 21, 1917. SIR: The Department has received your letter of the 13th instant in which you state that your company desires to obtain from the Government of Brazil an arrangement whereby a direct means of communication by telegraph and cable can be established between that country and the United States, in pursuance of which you are about to send a representative to Brazil, and that you are considering the appointment of Mr. Nelson O'Shaughnessy. You ask to be advised whether the Department will endorse your efforts through that representative. In reply I have to say that the Department is always glad to see American corporations engage in business ventures in other countries in cases where American interest will be advanced. I am [etc.] For the Secretary of State: File No. 832.73/109 The Acting Secretary of State to the Ambassador in Brazil (Morgan) [Telegram] WASHINGTON, August 3, 1917, 6 p. m. Nelson O'Shaughnessy is about to visit South America as representative of Western Union Telegraph Co. You are directed to grant him any proper assistance consistent with the instructions of the Department. POLK File No. 832.73/111 The Ambassador in Brazil (Morgan) to the Secretary of State [Telegram] RIO DE JANEIRO, August 13, 1917, 5 p. m. President of Brazil and Minister of Public Works have signed concession giving Central & South American Telegraph Co. right |