File No. 814.51/203A.

The Secretary of State to the American Chargé d’Affaires at London.

[Telegram—Paraphrase.]

A long instruction is being sent to you concerning the rehabilitation of the finances of Guatemala. Copies of the loan agreement submitted by American bankers to the Council of foreign bondholders will be inclosed. Pending arrival of the above you will at once orally express to the Foreign Office the deep interest of this Government in the plan for the rehabilitation of the finances of Guatemala. Make it clear that the Government of the United States feels sure that when the facts and circumstances are understood the British Government will examine the question from a much broader point of view and will give friendlier consideration to the predominant interests of the United States in the Caribbean republics, from which the pending question regarding Guatemala cannot be separated. Express the hope that, pending the fuller representations which you will make upon receipt of further instructions, the Foreign Office will confer with the Council of foreign bondholders, to whom a copy of the arrangements as affecting British subjects has been sent.

Knox.