819.51/191: Telegram

The Minister in Panama (Price) to the Acting Secretary of State

Fiscal Agent Ruan finds from reports made to him that external debt of the Republic of Panama amounts to $3,190,000 and internal indebtedness to approximately $1,500,000. Latter includes approximately $400,000 due Panama Canal and approximately $500,000 due for salaries and current expenses. In order to relieve critical situation more promptly than reform in taxation and economics [economies] could do, Fiscal Agent has recommended to Panaman President that he secure from National Assembly before adjournment authorization to borrow $1,000,000 and to pledge for loan any of the national revenues, including the unpledged balance of canal annuity and the unpledged balance of income from $6,000,000 invested in New York. Fiscal Agent suggesting to Panaman President that he request the good offices of the United States in procuring such loan from banking institutions.