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The wording of the contracts between your estate and the " colonos " may be an element in its determination.

In the absence of instructions from the Department of State I am not authorized to protest against the enforcement of the decision of May 14, and the data in my possession as to the sugar embargoed which is not your property is not sufficient for me to venture to express an opinion.

I will send the Department of State copies of your letters as well as a copy of the decision, and I presume that Mr. Bass, who I understand is in the United States, will take steps to bring the matter before the Secretary of State. Yours, truly,

T. C. DAWSON.

Minister Dawson to the Secretary of State.

(Extracts. ]

No. 255.]

AMERICAN LEGATION,

Santo Domingo, June 9, 1906. Sir: Referring to the subject of my No. 253, of June 2, the sugar. production tax, I have the honor to report that on the 5th instant I had a short and informal talk with the minister of finance on the subject of the sale of sugar from Mr. Bass's estate in satisfaction of the judgment against him rendered May 14. The minister said that the Government desired to keep alive its rights under this judgment, but not unnecessarily embarrass the resident managers. He was willing that only a nominal amount of sugar should be sold at present and to entertain a proposition looking to the payment of the arrears in installments, but not a proposition to receive less than the legal tax. His duty as an administrative officer was confined to collecting the tax due under the law and the decision did not extend to accepting less than the amount so due.

Neither he nor the minister of foreign affairs said anything to me of negotiations pending in the United States between the Dominican minister resident and the sugar planters. My impression is that they had not then received news from Mr. Joubert that such negotiations were pending.

This morning I received from you the following telegram dated yesterday:

WASHINGTON, June 8, 1906. In view of the pending negotiations of sugar-estate owners with Joubert regarding terms of payment of arrears of production tax you will urgently request Santo Domingo Government suspension of any proceedings of seizure and sale. We understand sugar of one estate advertised to be sold on the 10th instant.

Root.

I immediately called on the minister of foreign affairs, who sent for the minister of finance. Upon my making the request as instructed, the latter said that he had given orders that only a nominal amountto wit, 500 bags-should be sold to-morrow; that his purpose was only to keep legally alive all the rights the Government had acquired against Mr. Bass by the decision of May 14; that he feared that the sale advertised for to-morrow could not be abandoned without destroying or weakening those rights; that he would consult the attorney-general as to the point, but feared that apart from the legal difficulties the time was too short to comply with your request.

The minister of finance also told me that a telegram had been received from Sr. Joubert submitting a proposition by the sugar planters to pay $100,000 in installments running over five years. This was not satisfactory; as he had said before, he was authorized to concede time but not to reduce the amount; only Congress could do the latter.

I thereupon wrote Mr. Stiernstam, Mr. Bass's resident manager, informing him of the probable postponement of the sale. A copy of my letter is inclosed. I also confirm my telegram to you as follows:

SANTO DOMINGO, June 9, 1906. Suspension of sugar sale promised.

DAWSON. Since the minister of finance is going to Washington by way of New York to-night he will have an opportunity to see the estate owners in person and will come to a definite conclusion with them of this long-pending controversy. I have, etc.,

T. C. Dawson.

[Inclosure.)

Minister Dawson to Mr. Gustav Stiernstam.

AMERICAN LEGATION,

Santo Domingo, June 9, 1906. SIR: Referring to the subject of your letter to me of May 24 and 30 and mine of June 2, I have to say that I was informed to-day by the minister of finance that it had not been the intention of the Government to sell to-morrow more than 500 bags in pursuance of the judgment of the supreme court of May 14, nor to include in the sale any sugar as to the ownership of which there might be a question. The Government's idea seems to have been not so much to enforce the immediate payment of the whole amount as to assert their rights under the judgment. The minister also informs me that the procurador general is of the opinion that the sale should be postponed so that the nominal amount seized may be offered as the law provides in a market—that is to say at Macoris and uot at the estate.

Negotiations are pending between your principal and the Government as to the terms and time of payment, and the postponement of the sale seems to best suit the interests of both parties. Yours, truly,

(Signed) T. C. DAWSON.

ECUADOR.

REVOLUTION.

Minister Lee to the Secretary of State.

[Extracts.)

No. 7.]

AMERICAN LEGATION,

Quito, January 13, 1906. Sir: I regret to inform you that a revolution against the constitutional Government broke out on January 1 between here and the coast. It has since spread to the north along the Colombian border. It is considered likely that Quito may be entered at any time. Four battalions of federal troops have gone over to the opposition. There have been several engagements and many killed and wounded.

There has been no communication either by mail or telegraph since January 1. As Quito is a day and a half by mule back or wagon from the end of the railway—and there has been no communication for two weeks—supplies and provisions have advanced to a tremendous extent, and there is great suffering among the lower classes. I have, etc.,

JOSEPH W. J. LEE.

Minister Lee to the Secretary of State.

[Extracts.)

No. 10.]

AMERICAN LEGATION,

Quito, January 20, 1906. Sir: I have the honor to report that after several engagements Gen. Eloy Alfaro, a former President of Ecuador and now leader of the revolutionists, entered Quito and took possession January 17, 11 a. m.

The constitutional President to whom my letter of credence was addressed, Mr. Lizardo Garcia, took refuge in the legation of Colombia, but before doing so he issued a decree, according to the constitution, removing the capital of the Republic to Guayaquil and transferring the executive power to the Vice-President, who resides in that city. Also a strong cabinet was re-formed there.

The insurgents entered in more or less order. There was little disturbance.

The federal opposition, after the defection of the four battalions noted in my No. 7 of January 13, seems to have melted here like snow in the sun. However, Guayaquil, which controls the monetary situation, is reported loyal to the constitutional Government, and Gen

eral Plaza is there preparing his troops for the retaking of Quito. Before the entry of the insurgents, and after receiving a copy of President Garcia's decree transferring the capital, the diplomatic corps met at the house of the dean, Mr. MicaheÎles, the German minister, and finally adopted my suggestion that they defer all official treaty with the power in possession until instructions are received. Yesterday I received a communication from the insurgent government requesting me to inform you that General Alfaro had assumed entire charge of the Republic. I await instructions before replying; in the meantime a week or so may change the situation radically.

Prices are soaring and there has been no communication with the coast for twenty days. This dispatch and others go forward by a second attempt to send a diplomatic post through. The first returned. I have, etc.,

JOSEPH W. J. LEE.

Minister Lee to the Secretary of State.

No. 13.]

AMERICAN LEGATION,

Quito, February 16, 1906. SIR: I have the honor to inclose herewith replies from the Gov. ernment of Ecuador to the letter of recall of Mr. Sampson and to my letter of credence.

General Alfaro is in control of the Republic as Supreme Chief, and seems likely to remain so. He has appointed a cabinet and filled the public offices.

After waiting one month and after receiving the inclosed documents, and as former President Garcia has relinquished his position and is on his way to Europe, I requested an audience with the Supreme Chief. He received me at 2 p. m. yesterday (15th), and I thus put an end to a situation which was becoming intolerable. The visits of the remainder of the diplomatic corps will follow. General Alfaro was plainly very much pleased with my visit. He seems an ardent admirer of the United States. The situation is quiet and a period of peace appears to be at hand. I have, etc.,

JOSEPH W. J. LEE.

VISIT OF SECRETARY ROOT TO SOUTH AMERICA.

The Ecuadorean Minister to the Secretary of State.

[Translation. ]

LEGATION OF ECUADOR,

Washington, D. C., May 25, 190. MR. SECRETARY: Agreeably to the gratifying conference I had yesterday with your excellency, I take pleasure in confirming, in writing, the invitation extended to your excellency by the Government and people of Ecuador, kindly to honor the Republic with your visit after the Rio de Janeiro conference.

Not printed.

My country desires that your excellency, as Minister of Foreign Relations of the United States, be given opportunity of satisfying yourself, by personal observation, of the good will and sympathy of Ecuador toward the American Government and people.

The commercial relations between our two countries have been enlarged so much of late that your excellency will be able to estimate the grand future that is in store for the commerce between the two Republics when the much desired opening of the Panama Canal shall have become a fact and enhanced the luster of your excellency's country.

Better acquaintance begets higher esteem among the nations; thus will your excellency's visit to the Republics of the South be beneficial in every respect, since it will open the way to relations of perfect harmony among the States of this continent.

Your excellency was good enough to tell me that the time of which you could dispose for your long voyage was very limited, but you gladly accepted the invitation to go to Guayaquil, in any event, and hoped to proceed to Quito, if circumstances permitted, and gratify the wish of the undersigned that your excellency be enabled to form an accurate idea of the immense resources of the country, in both the coast and Andes regions.

The legations of Ecuador accredited to Brazil, Chile, and Peru shall be instructed by my Government to confer with your excellency touching the particulars of your voyage so that our chancellery may be advised of the date of your excellency's arrival in the Gulf of Guayaquil. As the war ship that is to carry your excellency is a 10.000-ton vessel, an Ecuadorean cruiser will meet your excellency at the island of Puna and convey you to the city. The other details can easily be arranged at interviews I shall have hereafter with the Department of State.

I will not close this note without thanking your excellency, in the name of my Government and my own, for accepting the invitation I have the honor to tender to you with the assurance that your excellency's high position, and the gifts of distinguished statesmanship with which you are graced, will contribute to draw close the bonds that unite Ecuador and the United States of America.

Hoping that your visit to my country will be enjoyable, I have the pleasure of expressing to your excellency the sentiments of high consideration of Your obedient and true servant,

(Signed) L. F. CARBO.

The Secretary of State to the Ecuadorean Minister. No. 4.]

DEPARTMENT OF STATE,

Washington, June 20, 1906. Sir: I duly received your polite note of the 25th_ultimo, an answer to which has been delayed in the hope that I might find it practicable to accept the very kind and most courteous invitation thereby extended on behalf of the Government and people of Ecuador to visit their capital during my forthcoming trip to South America.

59605-F R 1906 40

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