The Acting Secretary of State to the Chargé in Italy (Jay)
Sir: There is transmitted herewith for your attention a copy of Despatch No. 466, dated November 12, 1919, from the Legation of the United States at Quito, Ecuador, together with a copy of its enclosure reporting a prospective Italian loan to the Government of Ecuador.3
You are instructed to ascertain and report to the Department the truth concerning the matter, especially the supposed connection of the Italian Government therewith.
If you learn that the Government of Italy is contemplating making, guaranteeing, or in any way sponsoring the supposed loan, you are instructed discreetly to intimate to the proper official the fact that for several years past the Government of Ecuador has been in default on the service of the Guayaquil to Quito Railway bonds which are guaranteed by the Government of Ecuador and to the service of which the whole of the customs revenues of Ecuador are pledged. You will also at your discretion intimate that the Government of the United States looks with disfavor on any increase in the foreign debt of Ecuador which does not provide for paying the arrears and in future meeting the service of the bonds of the Guayaquil to Quito Railway Company.
I am [etc.]