File No. 422.11G93/777.

The British Embassy to the Secretary of State.


The British holders of the Guayaquil & Quito Railway bonds have recently represented to His Majesty’s Government that their position would be much strengthened if united action were possible on the part of the United States Government and His Majesty’s Government with a view to pressing the Ecuadorian Government for the payment to the bondholders of the customs revenue assigned for the service of these bonds, and have expressed the fear that the Ecuadorian Government have appropriated the funds in question for other purposes.

Instructions have been sent to the British representative at Quito to draw the attention of the Ecuadorian Government to their obligations towards the bondholders, and the British Ambassador would be very much obliged if he could be given any indication as to whether the United States Government contemplates taking any steps of a similar nature.