File No. 422.11G93/921

Minister Hartman to the Secretary of State


My February 17, 5 p.m. I now have reply to my note last Friday. The Minister for Foreign Affairs again denies right of diplomatic intervention, but reaffirms the unalterable purpose of Government of Ecuador to pay all its obligations as soon as possible. Referring to the demand that a definite time be fixed for payment of interest and resumption of deposits, he says that my note was transcribed to the Minister of Interior, who will very soon answer regarding that subject.

I have some hope that the Minister of the Interior will make satisfactory answer as to time of payment of interest and resumption of deposits, but realize the embarrassments under which Government of Ecuador labors not only in its shortage of money but in the [Page 739] attitude of the people toward the subject and their disposition to start a revolution on the slightest provocation.

In consultation with British Chargé d’Affaires, he informed me that he has [apparent omission] the advisability of Mr. Cooper, of the council of foreign bondholders, and some representative of Bankers Trust Company, coming to Quito to deal directly with the Ecuadorean Government on the subject of existing indebtedness and proposed loan. He says that he has been reliably informed that the Ecuadorean Government would agree to such a proposition. He also suggested to his Government that if this arrangement be agreed to, further diplomatic pressure by the United States might be held in abeyance pending negotiations.