422.11 G 93/1206
The Secretary of State to the Ambassador in Great Britain ( Harvey )
Sir: There is transmitted herewith for your information copy of a letter addressed to the Secretary of State by the Secretary of the Council of Foreign Bondholders, 17 Moorgate Street, London, under date of November 15, 1921,29 requesting the assistance of the Government of the United States in behalf of the holders of bonds of the Guayaquil and Quito Railway and of the four per cent Ecuadorean Government Salt Bonds.
The Secretary of the Council of Foreign Bondholders invites attention, in particular, to the withdrawal by the Ecuadorean Government, for other purposes, of 390,000 sucres, from the funds deposited for the service of the bonds; and to the unfulfilled promise of the Government of Ecuador that the funds deposited would be transferred from the Banco Comercial y Agricola to the Commercial Bank of Spanish America.
In view of these conditions the request is made in the letter referred to, that this Government appoint a representative in Ecuador for the purpose of securing observance of the contract with the bondholders.
The present situation is that this Government, having been apprised of the conditions above referred to, and having instructed its diplomatic representative in Ecuador to bring them to the attention of the proper authorities, is now advised that arrangements are now being made by the Ecuadorean Government to return the monies withdrawn from the deposited funds at an early date, and also that the transfer of the funds to the Commercial Bank of Spanish America will be made at once.
You will, in your discretion, communicate the foregoing to the Council of Foreign Bondholders, as a reply to the letter of November 15, 1921, from the Secretary of the Council.
I am [etc.]
- Not printed.↩