701.1511/128

The Chargé in Honduras ( Spencer ) to the Secretary of State

No. 125

Sir: I have the honor to inform the Department that don Antonio Lopez, the brother of the President of Honduras, left Tegucigalpa yesterday to return to Washington to resume his duties as Minister of Honduras.

[Page 247]

Before leaving, don Antonio called at the Legation and discussed at great length the financial problems of Honduras, of which he has made an exhaustive study. He is prepared to take up the questions in all their details with the Department immediately upon his return, with a view, I think, of making a loan in the United. States and coming to some agreement with American bankers for the appointment of a fiscal agent.

Dr. Young’s contract expired on January 11th, last, and has been renewed until July 31st, next, on which date the new budget proposed by the National Congress, and on which Dr. Young did much work, will go into effect with its many financial reforms.

The President has expressed himself as very appreciative of Dr. Young’s services, but stated to me again as late as this morning, that he does not intend to avail himself of Dr. Young’s services after July 31st, next.

In many ways I regret to have to report this to the Department, as Dr. Young has done excellent work during his year in Honduras, but I am forced to state that in view of the practically unanimous opposition he has created it seems better not to “protest” the ending of his contract at this time. …

I have [etc.]

Willing Spencer