The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-07-16
WILL BE REMOVED
ASFACT0R IN WAR
Naturalization of Galapagos
Islands Soon May Be
Accomplished.
COMMAND CANAL ENTRANCE
Accomplishment Will Be Big
Victory for Dollar
Diplomacy"
by WNI. HOSTES.

by VIM. HOsTER.
Washington. July l5.-Ncgotia lions
are under way through the State De-
partment whereby the Galapagos ISL
ands, off the coast Of Ecuador, and
commanding the Pacific entrance to
the Panama Canal, will be forever re-
moved as factor TO be turned against
the safety of the United States in the
event Of war
Abandoning the old plan of purchas-
ing the islands from Ecuador. Score
tary Knox has called his dollar
diplomacy" into play. But one OF
stacie, in the person of Archer Har-
mon, a promoter, stands in the way OF
the accomplishment OF the plan, and
conferences TO be held at the State
Department within a few days are eX-
pected to remove him from the
equation
Not only then will the neuralgia
ton of the Galapasnos Islands he ac-
complishod, but one OF the pest holes
OF the world VIII be cleaned up: hume
~ GuayaQuil the seaport OF Ecuador
and control OF the railway in Ecuador
will be retained in American hands
and the stock and bondholdcrs of this
road will be fully protected in their
rights.
The long discussed $4,000 900 loan
TO Ecuador is the means BY which
these ends arc TO be brought about.
For the present Ny Harmon alone
is blocking, the success OF Secretary
KnoX's plaza. The Intervention OF the
State Department IS necessary to avert
crisis that would no, only menace
American interests in Ecuador. but
place the United States ut 4 great
tactical disadvantage in relation TO
the great waterway that is nearing
completion across the isthmus.
Speycr {; Company of New York
are the tinancicrs who are back Of the
proposed loan. which is not 10 be guar
antccd by the United States through
treaty. as in the case OF the proposed
loans TO Honduras and Nicaragua. but
is being placed on their own responsi-
bility with only such support from tho
United states as is accorded 10 all for
cign investors in foreign countries.
The situation is interesting as Hits
trating the new phase of State craft
embraced IN the dollar diplomacy"
One has but TO look a; 4 map to dis
cover that stratcgic Importance Of
the Galapagos Islands. in their rcla-
ton to the Panama Canal. Lying off
Il
direct line with abe Pacific entrance
to the canal.
AS base of supplies. they would
afford inestimablc advantages to the
nation possessing them Ever since
the United States actively took up the
problem of digging the canal it has
been the dream Of statesmen and mil
itary expects to have the American
flag flying over these islands
Tn, tnl- no II 1r = Ay Af
the loan. therefore. which must have
the sympathetic support of the United
States ut least. the State Department
put forward a series of considerations
as follows
First 1t must be understood that
the islands are not 10 he fortified or
disposed of to any foreign power.
Second. Assurances must be given
that the port OF Guayiquill will be
cleaned and put in perfect sanitary
condition In advance of the opening
OF the Panama Canal. American sani-
tary experts will be furnished for the
purpose If desired.
Thirdly. the Quito Railroad must be
retained in American control and the
interests of stock and bondholders
amply safeguardcd.
The correspondent is authorized 10
say that nothing more than n formal
]
BY the department
Ecuador is up In arms over the affair.
The newspapers are filled with pro-
tests against the loan. Tho existing
administration will retire from Office
on august 81. Estrada is bitterly OPP
posed 10 the loan. which must have
the approval o. the Ecuadorian Con-
gress to become effective a spccia!
session OF the Congress has been called
10 meet on July "a
II IS TO the influence of Harmon that
the recall OF Minister Fox from Ecua-
dor is attributed Mr.. Fox. 1t is de-
clarcd. has fallen under the promot-
er's spell, precisely as did Alfaro.
All OF the charges. all of the pro-
tests. that are being made against the
! loan lit back OF him, and the situation
| has become such that recent advices
! from Ecuador indicate that unless Har-
mon is induced 20 get out of the coun-
! try trouble Will follow an attempt 10
put The loan through at the special
sessicr Of the Congress.