816.51/65
The Acting Secretary of State to the French Ambassador (Jusserand)
Excellency: I have the honor to acknowledge Your Excellency’s note of May 20,1 advising me that the French Government has received information to the effect that the Government of Salvador contemplates floating in the United States a loan to be secured by the export duties imposed by the Government of Salvador.
[Page 845]Your Excellency informs me, by instruction from your Government, that during the year, 1919, the French firm of Léon Dreyfus advanced to the Government of Salvador the sum of $780,000, and received as security for that amount bonds secured by the duties on coffee exports. Your Excellency further states that no matter what the terms of the contemplated loan may be, it would seem to be clear that under these circumstances the revenue already pledged as above stated should not be used as security for any other similar transaction, and that, under these circumstances, the French Government is interested in avoiding any misunderstanding on this point.
I have been glad to take due note of the information so conveyed to me by Your Excellency.
Accept [etc.]
- Not printed.↩