File No. 814.51/221.
The American, Chargé d’Affaires at London to the Secretary of State.
London , January 27, 1913 .
Sir Edward Grey today gave me his answer on the Guatemalan loan. He stated that the most careful and willing consideration had been given to the Department’s representations, with the earnest wish to meet the desires of the Department, but the Foreign Office did not see its way clear to make the desired recommendations to the bondholders; that the British Government was convinced of the bad faith of the President of Guatemala and could not bring itself to believe in the possibility of success of the loan negotiations; that he had every reason to believe that the Government of Guatemala seemed to be favorable to the loan negotiations in order to avoid a settlement of its obligations. A memorandum1 was handed to Mr. Laughlin. [Quotation therefrom.]
- See next page.↩