shall be set apart to meet the expenses occasioned by the irrigation of Monte Cristi district by the submersion system according to the plans prepared for that purpose and deposited in the Ministry of Fomento and Public Works.

"Paragraph. The amount above set out shall be assigned in the Law of Public Expenditures, annually voted by the National Congress, under the heading of "Fomento and public works."

"ART. 2. The above-mentioned work is under the charge of the Executive power, which shall employ all the means which may be within its power and exercise all necessary diligence tending to bring to a happy issue and in the shortest time the realization of this so important work."

MUNICIPAL IMPROVEMENTS AT SANTO DOMINGO.

The Gaceta Oficial of April 20, 1907, publishes the text of the resolution of the National Congress of April 15, approved by President CACERES April 19, 1907, authorizing the municipal government of the city of Santo Domingo to contract a loan of $600,000 gold at 6 per cent interest with a sinking fund of 1 per cent, the proceeds of which are to be employed in building an aqueduct for public and private use of the city, in modernizing the electric plant, in improvement of city streets, in building a public market and a theater. In a circular letter issued by the municipal government of Santo Domingo on April 26 correspondence in regard to the proposed improvements is invited.

ECUADOR.

RECEPTION OF UNITED STATES MINISTER.

Hon. WILLIAMS C. Fox, formerly Director of the International Bureau of the American Republics, was, on April 18, 1907, received in Quito by President ALFARO as Envoy Extraordinary and Minister Plenipotentiary from the United States to Ecuador.

On presenting his credentials, Minister Fox said:

"YOUR EXCELLENCY: In the name of the Government of the United States of America I have the honor to present to Your Excellency the letter of recall of my predecessor, Mr. JOSEPH W. J. LEE, and also that which accredits me as Envoy Extraordinary and Minister Plenipotentiary of my country to the Government of the Republic of Ecuador.

"The distinguished preference of my Government in conferring upon me this duty I consider not only pleasing, but also I esteem it a personal good fortune in that it gives me the opportunity to discharge the friendly duties relating to the official position I come to

occupy. Conformably to the instructions of the President of the United States, I shall do all within my power to preserve and to extend the cordial relations which happily have always existed between Ecuador and my country.

"We march together, sir, on the road of progress. Together, we recognize likewise that, although civilization came from Europe and that the aspirations of humanity are the same, we must confess that in the Western Hemisphere there are special interests, with less international complications, to assure the happiness of the peoples. Together, also, we wish for no victories but those of peace; for no territory except our own; for no sovereignty except the sovereignty over ourselves. It is our desire in the affairs of the world to maintain mutual respect and just consideration for the rights one of the other, for peace, prosperity, and progress.

"You will please, sir, to accept the cordial greeting of President ROOSEVELT and the sincere good wishes of the people of the United States, to which allow me to join the high appreciation which I entertain of the honor done me in being chosen as the official representative of my Government, near that of your Excellency."

The President of the Republic, Señor General Don ELOY ALFARO, answered.

"Mr. MINISTER: Together with the letter of recall of your distinguished predecessor, Mr. JOSEPH W. J. LEE, you have placed in my hands the credentials which invest you with the high charge of Envoy Extraordinary and Minister Plenipotentiary of the United States of America to the Government of Ecuador.

"The relations between our respective countries, never interrupted and each day more cordial and solid, will make you understand, Mr. Minister, that the mission confided to your personal talents will encounter the most favorable reception from the Government and people of Ecuador.

"As director of the International Bureau of the Republics of this Hemisphere you have come to appreciate our great ideals, so I am confident that the greater part of your diplomatic labor will be found in strengthening the chains that unite the American nations, so that they may work together for the final triumph of justice and liberty. "It has pleased me much, Mr. Minister, to hear you interpret with so much ability the ideas of your eminent statesmen in reference to the common interests of America. In accord with these fundamental principles of the Law of Nations, you encounter here a people who aspire to no other victories than those of peace, for never have they waged war; you encounter a people who wish for no other territory but their own, for never have they claimed any other; here, finally, you encounter a people who covet no sovereignty except that over themselves, for they wish to be in the right that they may be respected

and upheld in their independence and in their constant desire for their national prosperity and that of their sister nations of the continent. I beg that you will present to President ROOSEVELT my sincere wishes for his personal happiness and the prosperity of the nation he directs. In regard to yourself, be welcome, Mr. Minister, and may your pleasant stay among us make you to remember that we have learned to appreciate your merits."

TARIFF MODIFICATIONS.

According to El Registro Oficial No. 280, of January 17, 1907, customs duties in the Republic of Ecuador are modified as follows:

The following articles of primary necessity are exempted from all fiscal and municipal taxes: Maize, barley, potatoes, beans, vetches, lentils, wheat, and sugar.

The import duty on vermicelli shall be at the rate of 1 centavo per kilogram.

Rice and flour imported from Peru into the Province of Loja through the land custom-house at Macara are also declared to be free of all fiscal and municipal tax.

Beer manufactured in the sea districts shall be liable to a tax of 2 centavos per bottle, and foreign beer shall pay a sole import duty of 3 centavos per kilogram, gross weight, in addition to the surtax of 100 per cent, the consumption duty thereon being abolished.

The present law shall become effective throughout the Republic six days after its promulgation in the capital.

REGULATION OF THE CUSTOMS SERVICE.

The Registro Oficial of March 21, 1907, publishes the text of the decree of President Alfaro, dated March 20, 1907, reorganizing the custom-house service at Guayaquil and prescribing the duties of the several officers connected therewith.

THE EASTERN ECUADOR EXPLORATION COMPANY.

Information furnished by the United States Consul at Guayaquil states that on March 26, 1907, a contract was signed ad referendum by the Minister of the Interior of Ecuador authorizing the formation of the Eastern Ecuador Exploration Company, to be incorporated in London or in such place as shall be approved by the Government. The purposes of the company are:

First, to construct a railroad from Ambato to some point on the Curaray River at or below the head of navigation for this river. Second, to establish a port on the Curaray River at the terminus of the railroad. Third, to establish a regular line of steamers between the terminus of the road and the city of Para, in Brazil; also to establish lines of

steamers on any or all of the navigable rivers of the oriental region of Ecuador. Fourth, to explore the oriental region and exploit its riches, both mineral and vegetable. Fifth, to acquire temporary or permanent titles to mines, waterfalls, etc. Sixth, to procure foreign immigration and provide for the settlement in this (oriental) region of Ecuadorian farmers from other Provinces.

The term "oriental region" is defined to be all that territory lying between the eastern watershed of the eastern chain of the Ecuadorian Andes and the northeastern, eastern, and southeastern boundaries of the Republic, but the Government of Ecuador may fix the western limit of this region with greater accuracy if necessary or desirable. Plans for the railroad must be presented within one year from date of contract, and the capital which is used in the construction of the road will be repaid by the Government of Ecuador in bonds secured by special funds. When the plans for the road are accepted, permanent title will be given to the company to alternate tracts of land 4 miles wide along its entire length.

The company through, its own operations or through a subsidiary company, promises to operate a line of steamers between the terminus of its railroad and the city of Para. It will establish hotels and hospitals and an office to facilitate the immigrant in preempting a homestead; this office will furnish the services of a surveyor and an expert agriculturist to the immigrant without charge, except for actual expenses. Immigration offices will be maintained by the company in the United States, Europe, and such other places as may be convenient, and the company may contract with the immigrant for his passage and for the necessary equipment for establishing himself.

No restrictions are to be placed on the exportation of the products of the oriental region by any route, nor on the exportation of foreignmade or foreign-produced articles by way of the rivers of this region. The company obligates itself to pay market prices for the products of this region, such as rubber, quinine, etc., less the actual cost of transportation to the Amazonian market. The rights conferred are not transferable and merchants already established in this region will be protected in their negotiations. Selling firearms to Indians is prohibited unless authorized by Congress, and the liquor traffic is to be regulated and taxed. The Government will maintain order and provide for courts of justice, and in case of necessity will authorize the company to employ special police. Export duties will be the minimum charged by Brazil, Peru, or Colombia. Hydrographic and topographic maps of the oriental region must be completed by the company within five years from the time their work is begun, and such maps will become the property of the Government.

The company will have the exclusive right for five years to locate and file upon such properties as mines, rubber zones, quinine zones,

etc., and to exploit such properties as may be thus located for fifty years; in the case of vegetable products title to the land which such products occupy is not conferred. Titles to mines may be acquired by fulfilling the usual conditions required by the Government of Ecuador and exploiting such property within ten years from date of discovery. Employees of the company are prohibited by the Government from filing upon mining properties until they may have left the service of the company ten years, unless permitted to do so by the company. Provision is made for fair dealing with Indians.

At the end of fifty years the concessions granted by the contract will be canceled by the Government, but this will not affect permanent rights and titles that may have been acquired. The company is authorized to issue preferred stock at 10 per cent not to exceed $2,433,250 in value, provided an equal amount of common stock is issued at the same time. Common stock may be increased at the discretion of the company.

CONTRACT FOR A RAILWAY FROM HUIGRA TO CUENCA.

The Registro Oficial of Ecuador for February 21 publishes the text of the contract executed on February 7, 1907, between the Government, as authorized by decree of the National Assembly, and Mr. EDWARD MORLEY, of England, but domiciled in Ecuador, representing also Mr. GEORGE P. ALTENBERG, of New York, for the building of a railroad from Huigra to Cuenca.

The railroad is to be constructed by a company to be known as the "Huigra and Cuenca Railway Company," to be organized in Great Britain or in the United States, and is to be a 3 feet 6 inches gauge.

Importation of machinery, tools, and construction material is to be free of all taxes.

In a letter written to the International Bureau of the American Republics, on the subject, Mr. MORLEY says:

"This railway commences at Huigra, on the Guayaquil and Quito Railway, 72 miles from Guayaquil, and extends to Cuenca, in the southern plateau of Ecuador, crossing near the town of Azogues the immense coal field in that vicinity. This coal is of good quality and easily mined. It stands on edge, and there are ten principal seams, the largest being 10 feet wide, with 6 feet of good coal, the others varying from 1 to 4 feet each. The railway will cross this coal field. in three places at a distance of 70 miles from Huigra. The entire length of the line to Cuenca is 90 miles, and the construction will be easy, there being plenty of Indian labor obtainable at 40 cents gold per day. Very few bridges will be necessary, and those small ones. There is also good timber for ties and mining on the line. The climate is temperate, Huigra, where the line starts, being 4,100 feet above sea level, and Cuenca, the end of the route, 8,500 feet. The