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File No. 123.R27/64.

The American Chargé d'Affaires at London to the Secretary of

State.

[Telegram.-Paraphrase.]

No. 1121.1

AMERICAN EMBASSY, London, December 15, 1912.

I have the sad duty of announcing to you that the Ambassador died today at Dorchester House, at ten minutes past twelve o'clock. Subject to your instructions, I have assumed control of the Embassy as Chargé d'Affaires.

IRWIN B. LAUGHLIN.

File No. 123.R27/67.]

No. 1122.]

LONDON, December 16, 1912.

Sir Edward Grey has just sent me the following informal inquiry: If it would be acceptable to Mrs. Reid and to your Government, a British ship of war will convey the body of Mr. Whitelaw Reid to the United States. I am requested by Mrs. Reid to say that her wishes will be entirely in accord with your decision. I respect fully request to be instructed. LAUGHLIN.

File No. 123.R27/67.

The Secretary of State to the American Chargé d'Affaires.

[Telegrams. Paraphrases.]

DEPARTMENT OF STATE, Washington, December 17, 1912. It should rest with Mrs. Reid to decide as to the acceptance of the offer of the British Government to convey the body of the late Ambassador on a British ship of war, and her preference will be entirely acceptable to the Department. When you have ascertained the wishes of Mrs. Reid, you will express in the course of your reply to Sir Edward Grey the high appreciation felt by this Government for the courteous offer.

KNOX.

File No. 123.R27/66.

WASHINGTON, December 17, 1912.

The British Ambassador has in person conveyed his Government's condolence on the death of Mr. Whitelaw Reid. Please express this Government's sincere appreciation of this sympathy and of the high tribute paid to the qualities which enabled Mr. Reid to maintain between Great Britain and the United States a cordial bond of friend

ship.

ΚΝΟΣ.

File No. 123.R27/70.

The American Chargé d'Affaires to the Secretary of State.

[Telegram.-Paraphrase.]

No. 1123.]

AMERICAN EMBASSY, London, December 18, 1912.

Mrs. Reid desires me to express her deep appreciation of the action of this Government in leaving to her the decision as to the courteous offer of the British Government. On her behalf I have accepted that offer, of which Mrs. Reid is gratefully proud. Before permitting herself to consider the great personal distinction conferred upon Mr. Reid and the honor paid to his memory, Mrs. Reid regards them as shown primarily to the Nation he so earnestly served.

LAUGHLIN.

File No. 123.R27/70.

The Secretary of State to the American Chargé d'Affaires.

[Telegram.-Paraphrase.]

DEPARTMENT OF STATE, Washington, December 18, 1912.

Mrs. Reid's decision is very gratifying to the Department. Two battleships will meet the British ship off Nantucket.

KNOX.

File No. 123.R27/71.

The American Chargé d'Affaires to the Secretary of State.

[Telegrams.-Paraphrases.]

AMERICAN EMBASSY, London, December 18, 1912.

The Dean of Westminster has offered the Abbey for a memorial service for the late Ambassador. Mrs. Reid has accepted the offer and the service will take place next Friday at noon.

LAUGHLIN.

File No. 123.R27/74.

No. 1126.

LONDON, December 19, 1912.

The body of the late Ambassador will be conducted from Dorchester House with military escort on Saturday morning, December 21st, at ten o'clock. The British cruiser Natal will bear the body, sailing from Portsmouth Saturday afternoon, to arrive at New York on the morning of January third. Mrs. Reid asks me to say that nothing could exceed in kindness the English care and the thoughtfulness of the Government and all classes of the community.

LAUGHLIN.

GUATEMALA.

FINANCIAL AFFAIRS. DEMAND OF GREAT BRITAIN FOR RESTITUTION OF THE COFFEE REVENUES. PROPOSAL OF A NEW BOND ISSUE. GOOD OFFICES OF THE UNITED STATES.

File No. 814.51/167A.

No. 9.]

The Secretary of State to the Minister of Guatemala.

DEPARTMENT OF STATE,

Washington, May 23, 1912. SIR: The Government of the United States, as you well know, has long been impressed by the necessity for the rehabilitation of the finances of Guatemala as being evidently indispensable to the discharge of its international obligations as it is also essential to the adequate development of its resources and its participation in the commercial progress of Central America.

In view of the assurance of the President of Guatemala, renewed in April last to the American Minister, that it was His Excellency's purpose to conclude arrangements to that end before the adjournment of the present session of the National Assembly, the Government of the United States considers that its sincere friendship toward Guatemala demands that it inform the Government of Guatemala that since January last the Government of Great Britain has assumed a firm attitude regarding a settlement of the claims of the British bondholders, and that unless steps be taken toward such financial reorganization within the period mentioned by the President of Guatemala this Government may find it impossible further to endeavor to dissuade the Government of Great Britain from adopting such means for the enforcement of its claims as under all the circumstances may be justifiable.

Accept [etc.].

P. C. KNOX.

File No. 814.51/166.

The Minister of Guatemala to the Secretary of State.

[Translation.]

LEGATION OF GUATEMALA,
Washington, May 31, 1912.

SIR: Immediately upon receipt of your excellency's note of the 23d instant relative to the financial affairs of Guatemala I informed my Government thereof by cable, and I can now give you the satisfactory responses telegraphed to me by the President and the Minister for Foreign Affairs.

Permit me, in the first place, to express the high appreciation of the Government of Guatemala for the friendly interest which you

have manifested in behalf of the Government of the United States, and which shows anew the noble spirit that it displays toward the peoples of the New World, for which we are sincerely grateful and, which in my country we fully reciprocate.

The President charges me to say to your excellency that he firmly intends to lose no time in the matter of economic arrangements with American firms, and has practically concluded his examination of the several propositions submitted. The most acceptable of these requires sixty days for the determination of the changes considered necessary, especially as to the form of redeeming the English loan, and as he can not, on the other hand, constitutionally prolong the sessions of Congress, the Government will call an extraordinary session of the Legislative Assembly, as already announced by the Department of Hacienda and Public Credit, as soon as the said American firms return their respective contracts.

Everything therefore depends exclusively on the activity of the bankers, and the President hopes that what for so many years has not been attained will soon be accomplished by his Administration, realizing in deeds his most constant desire for an arrangement which, as your excellency says, will produce the best results for the development and welfare of Guatemala.

Accept [etc.]

JOAQUÍN Méndez.

File No. 814.51/166.

The Secretary of State to the Minister of Guatemala.

DEPARTMENT OF STATE, Washington, June 12, 1912. SIR: I have the honor to acknowledge, with gratification, the receipt of your note of the 31st ultimo, in which you inform the Department that the examination of the several propositions submitted to your Government for the rehabilitation of the finances of Guatemala is practically concluded, and that in view of the fact that the one most acceptable to the Government requires sixty days. for the determination of necessary changes, especially as regards the form in which it may be expedient to redeem the English loan, the Government will call an extraordinary session of the Legislative Assembly, as already announced, as soon as the American firms concerned shall have returned their respective contracts.

Accept [etc.]

P. C. KNOX.

File No. 814.51/177.

The British Chargé d'Affaires to the Secretary of State.

BRITISH EMBASSY, Washington, August 28, 1912.

SIR: I have the honour to enclose copies of a correspondence which I have received from His Majesty's Principal Secretary of

1 Not printed.

State for Foreign Affairs regarding the external debt of Guatemala, in which His Majesty's Government have instructed the British Chargé d'Affaires at Guatemala to demand that the British claims be submitted to arbitration.

His Majesty's Government have exhausted all possible methods of negotiation in their endeavour to secure a settlement of the debt, but have failed to obtain satisfaction.

The Secretary of State has more than once expressed his willingness to support His Majesty's Government in such representations as those now made, and I am instructed to ask the good offices of the United States Government on the present occasion to secure the submission of the matter to arbitration.

I have [etc.]

A. MITCHELL INNES.

File No. 814.51/177b.

The Acting Secretary of State to the American Chargé d'Affaires.

[Telegram.-Paraphrase.-Aide-mémoire.]

DEPARTMENT OF STATE, Washington, September 14, 1912.

The Minister of Guatemala on September 13 handed the Department the following instruction from his Government, dated September 10:

The British Legation, declaring itself to be in accord with Washington, requests arbitration of English loan matter. You will inform the Department of State that a financial arrangement is on the point of completion, and this British request will greatly embarrass it.

The Minister of Guatemala continuing to insist on the further exercise of the friendly good offices of this Government in order to procure additional delay by the British Government, the Department handed the Minister the following aide-mémoire, dated September

13, 1912:

In deference to the friendship existing between the United States and Guatemala, and as a further evidence of the good will of the Government of the United States toward that of Guatemala and its earnest desire to serve that Government by assisting it to negotiate through American bankers some satisfactory financial rehabilitation including provision for an equitable settlement of just British and other claims, the Department of State will once more informally address the British Government and urge that it withhold for twenty days its demand for arbitration, in order to enable the Government of Guatemala to effect the settlement as above indicated. But if the Government of Guatemala shall not have completed an arrangement as hereinbefore outlined at the expiration of that delay, the Government of the United States will be obliged to believe that the Government of Guatemala does not really intend to comply with its repeated promises, and under the circumstances will regret to find itself absolutely unwilling to intervene further.

The Government of the United States in this connection invites the attention of the Government of Guatemala to the latter part of Article 1 of The Hague Convention of 1907 respecting the recovery of contract debts.

If the Government of Guatemala desires that the suggested action be taken by the Government of the United States, it will be necessary that the reply be received on September 16, 1912.

ADEE.

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