File No. 822.51/185
Minister Hartman to the Secretary of State.
Quito , August 22, 1914 .
The Ecuadorean Government earnestly solicits the assistance of the United States Government in their attempt to procure a loan of $8,000,000 from the National City Bank or the First National Bank of New York City. The Minister for Foreign Affairs informs me that the loan is desired to pay the indebtedness of the Government to Ecuadorean banks which bear high rates of interest. He says that Ecuador will pledge fifty per cent of all export duties as security for the loan, and that export duties amount annually to approximately 10,000,000 sucres. On this basis and with proper safeguards as to collection and application of portion pledged, the loan appears reasonably safe unless the revolution should be successful, in which case delay in payment would probably follow. I believe that such assistance as our Government can properly render in the matter will be greatly appreciated by Ecuador.