File No. 822.51/196.

Minister Hartman to the Secretary of State.


The Ecuadorian Government urgently requests the Department’s active assistance in its efforts to procure loan. The situation is critical. The army and civil employees are unpaid and unless loan is secured soon another uprising against the Government is probable. If the loan is secured now with the assistance of our Government the establishment of better relations will be aided and consequent [Page 354] advantages secured. I earnestly recommend prompt assistance. I am reliably informed that railway company is assisting and hope that council of foreign bondholders will also help. The British Chargé d’Affaires and I agree that until the loan is secured it is inadvisable and futile to urge remittances on delinquent coupons or payment of obligations from Ecuador to railway company.