No. 8i*7.
BRITISH EMBASSY,
WASHINGTON, D.C. ,
September 26th, 19W>.
My Lord,
I fa*Ye the honour to inform you that the
head of the Latin American Division at the State
Department has told the Counsellor of this Snbassy
that an Italian military mission has been training
the Beuadorean Army, and that the So ua dor can
Government, with some encouragement from the United
States Government, has terminated the mission's
contracts so as to make them expire on the 15th
October next.       Mr* Duggan said that the United
States Government would like the five Italian
officers who compose the mission to return to Europe
by Pan American Clipper, and hope that His Majesty's
Government will waive tneir natural objection to
this reinforcement of the Italian Army and take no
action to remove the officers, should the Clipper
be obliged to call at Bermuda.     I enclose a list
of the members of the mission.
2* The excuse which Mr* Duggan advanced for
this request was that Ecuador is near the Canal Zone,
in the safety of which His Majesty's Government also
have an Interest, and that unless the Italian officers
are assured of a passage home they would be all too
likely to obtain employment in Ecuador with oppor-
tunities for mischief.
3* The State Department's request seemed to me
unreasonable and ray first inclination was to reject
it without reference to Your Lordship.     I felt,
however, that as the State Department had recently
been very cooperative in preventing the return to
Europe of Germans who might be useful to the enemy's
war effort, it would strike them as less unfriendly
if I referred their request to you.     Mr. Duggan has
been informed that I am doing this, but it has been
made clear to him that you are likely to find the
request difficult of acceptance. The United States
Government are in effect asking that His Majesty's
Government should agree not to prevent a reinforcement
of the Italian threat to the Suez Canal in order to
make It easier for them to safeguard the Panama Canal.
Even if it be admitted that the five officers are, by
their experience and training, better equipped to offer
a threat to the Panama Canal than to the Suez Canal,
it is nevertheless the case that His Majesty's
Government are primarily interested in the latter, and
are in fact defending it against odds at this moment*
The necessity of defending the Panama Canal haB not
yet arisen; when it does the odds will be largely in
favour of the defence, and in any case it is only
at second hand that Hie Majesty's Government are
concerned with it.
The Right Honourable
The Viscount Halifax, K.G.,
etc.,       etc., etc*
it* Though/
NMB:AR:NT
1
k. Though I feel sure that Your Lordship
will agree with roe in thinking the request un-
reasonable, it is only fair to say that it would
have been possible, if unfriendly, for the State
Department to instruct the United States Minister
at ^uito to tell the five officers that they
would arrange for them to travel home by a Clipper
that does not call at Bermuda.    It is, after all,
only on account of pressure from the United States
Government that the Clipper ever calls at Bermuda.
If the State Department would arrange in this way
for the Italians tc travel by a Clipper that does
not call at Bermuda, the latter might be quite
ready to take the chance offered to them.
Alternatively, it would seem that they could fly
home by the Italian Air Line which, according to
my information, still functions intermittently from
Brazil.
5. I should be grateful to learn whether
Your Lordship would like die to inform the State
Department that His Majesty's Government cannot
agree to conniving at the return of the five
Italian officers to Europe.
6. I have telegraphed to His Majesty's
Minister at Quito, asking him to keep me informed
of the movements of the five officers in question.
I have the honour to be,
with the highest respect,
You? fcordship^s most
obedient, humble,
servant,
(For the Ambassador)
(SOD) N. *". <BUIRL2R.