822.61334/55a: Telegram

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

21. It is reported that under recent law President of Ecuador has decided upon distribution of 66 per cent of three sucre tax equally amongst the three groups of claimants, the group having largest claim being American creditors, with no provision for extension of period of levying tax beyond December 31, 1925, to cover American claims then remaining unpaid.

From information at hand it would seem to Department that distribution should have been prorated among the three groups according to aggregate amount of claim of each. If you consider decision unfair to American claimants, urge reconsideration and arrangement for distribution of designated proceeds of tax upon equitable basis, Cable result.

Hughes