422.11 Am 8/18: Telegram

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

25. Your 37, December 13, 4 p.m. Note that President’s answer evades specific statement that municipality acknowledges debt to G. Amsinck and Company, and statement that decree fixing rate of exchange not applicable in this case, which statements are regarded by company as important prerequisites to initiating negotiations with municipality.

Also our 24, December 13, 6 p.m. What is decision regarding retroactive application of exchange decree to claims in general? [Page 878] President should realize that American claimants affected are so numerous that practically all important American banks are either directly or indirectly concerned regarding attitude of Ecuadorean Government in this matter, and might not be favorably disposed toward any further financial transaction with the Government of Ecuador until this matter satisfactorily adjusted. Refer also to transfer of Guayaquil and Quito Railway bond funds to representative of bondholders.6 Minister from Ecuador, Mr. Harman7 and others have called at Department to discuss plans of Government of Ecuador for foreign loan, but President of Ecuador should know that efforts of this Department and of other friends of his Government will be fruitless unless satisfactory adjustment of difficulties mentioned is determined.

Hughes
  1. Section on maintenance of the credit of the Guayaquil and Quito Railway, pp. 881 ff.
  2. Archer Harman, vice president of the Guayaquil and Quito Railway.