File No. 814.51/213.
The Secretary of State to the American Chargé d’Affaires at London.
Washington, January 18, 1913.
If further discussion with the British Foreign Office about the Guatemalan loan contract should prove necessary, his attention is directed to portions of instructions of December 6 and January 7 showing greater permanency and certainty as opposed to restitution of coffee revenues. This Government is not asking the Foreign Office [Page 565] definitely to abandon its position, only in case the loan agreement goes into effect. All that seems to be necessary now to complete the contract is the recommendation by the Council of Foreign Bondholders to the bondholders, but the Council seems to be unwilling to act unless advised by the Foreign Office to do so. If the bondholders agree to the arrangement and the agreement then fail, this Government will be ready to support the British as stated in the memorandum of December 3. At the same time this Government can hardly be expected to abandon so important a step in an important policy when it seems to be upon the point of fulfillment. The present administration is most anxious to see the matter concluded and would deplore any further delay.