611.2231/10: Telegram

The Secretary of State to the Minister in Ecuador (Hartman)

24. Your despatch No. 752, November 17.

Before Ecuadorean Government formally decides that the decree fixing the arbitrary rate of exchange is retroactive in accordance with the views expressed by the Minister of Foreign Affairs, it is of the utmost importance that you inform the President of Ecuador that despite reports of numerous protestants to the contrary, the Government of the United States has refused to believe that the Government of Ecuador has ihade any ruling that would deprive American citizens of rights acquired under contracts existing prior to said ruling, because of the conscientious efforts that in the past the Ecuadorean Government has made to protect the rights of foreigners and of the serious effect such a ruling would have abroad upon the credit of the Government of Ecuador and its citizens and because the Government of the United States has recently noted the increased desire of the Government of Ecuador to overcome the economic difficulties resulting from the European war; therefore the Government of the United States confidently expects a definite decision and announcement from the Government of Ecuador that its ruling with reference to the rate of exchange should not be so construed by debtors as to deprive foreign creditors of rights acquired prior to the ruling.