The Sun.
London, England, 1861-11-14 00:00:00

THE .REPUBLIC OF EQUADOR.

According to the last news from the Republic of
Equador, the President of Peru had addressed an.
overbearing and offensive ultimatum to the Govern-
ment, threatening them with a new blockade of the
port of Guayaquil, unless they will consent to the
cession of one-half of their territory. The Govern-
ment of Equador state that they have exhausted all
means of conciliation, but that Peru rejects every
offer, including the proposed mediation of her Ma-
jesty's Government. Twenty-five per cent. of the
Customs' receipts of Equador are devoted to the
payment of the British bondholders, and the neces-
sary consequence of the threatened blockade would
be again to suspend the payment of the dividends,
as happened two years ago, when Peru blockaded
Equador for 13 months without any result beyond
the interruption of commerce and the infliction of
a severe loss on British creditors. Happily, however,
the French Minister at Quito has now declared
officially that he will not recognise the threatened
blockade, and has called upon the naval forces of
France to give effect to this announcement. The
question is an old one, and will yet lead to mischief
if our Foreign-office permit it to be neglected, like
that with regard to Mexico, until its proportions
become such as actually to involve European com-
plications. Peru covets the possession of Equador
chiefly for her magnificent harbour of Guayaquil,
but it has been reported, also, that some of the
tools of the Peruvian President Castilla have at

-
times been large holders of Equador Bonds,
and would like to annex the country, in order,
as Peruvian securities stand high, to get the
debt transferred from one State to the other. The
possibility of motives of this kind being in opera-
tion must not be lost sight of by the persons inte-
rested. It might be calculated that an attack on
Equador would weaken the price of her bonds,
and be followed by a great rally if her conquest by
Peru could be consummated, and those who move
in such intrigues might make good capital of it.
But the Government of Equador, since the return
of General Flores, has been conducted with honesty
and ability, and it now has the confidence and good
wishes of all the English bondholders. Peru would
probably entertain little hope of being able to make
a successful aggression but for the fact that, two
years back, our Government allowed her to
blockade Guayaquil and keep out English com-
merce, and sacrifice the Customs' receipts due to
our people in support of General Franco, a usurper,
who was patronised by Castilla, and was at last
expelled loaded with the indignation and contempt
of the entire population. A word from the Eng-
lish commander on that station might have pre-
vented the whole of the evil, but until lately our
officers in every region have feared that they would
get nothing but disgrace at home by supporting
English rights. The course of the French Minister
will now most likely prove sufficient to prevent
any repetition of such losses to our subjects,
especially as it has been currently reported during
the last six months that negotiations have been
attempted, and have met with some encouragement
at Paris, for placing Equador under a French pro.
I tectorata.