File No. 711.38/29.

Chargé Davis to the Secretary of State.

[Telegrams.]

I have just returned from a conference with President and Cabinet which began at three this afternoon, at which time I had demanded a definite answer regarding treaty. Minister for Foreign Affairs and Minister of Public Works refused to accept Financial Adviser which, however, declared to be essential. Whereupon the President requested and accepted their immediate resignations. Remainder [Page 443]of Cabinet agreed to accept the treaty substantially as submitted. The President then asked me to allow him a short delay to enable him to fill vacancies in the Cabinet, to which I agreed. He then requested a conference with me tomorrow morning to discuss appointees. Resignation of Minister for Foreign Affairs removes cause of previous delays and will doubtless enable the President to expedite signing. President’s action today seems to indicate that he now realizes the necessity for action without further delay and that he has determined to use all means to attain this end.

Davis.