816.51/88: Telegram

The Minister in Salvador ( Schuyler ) to the Secretary of State

38. In answer to your telegram of August 23, 6 p.m., the President will agree extension 2 months provided it does not interfere with his negotiating another loan meanwhile. The President agrees any other loan shall be redeemable at any time. Confidential representative of Anglo and London Paris National Bank [of] San Francisco together with Bloom, President of Banco Occidental, is now here trying to negotiate $5,000,000 25-year loan giving one and half million new money, balance assumption debts to the three local banks. If they obtain loan they will consolidate three banks into one and form new foreign bank based on charter similar Keilhauer option.

Anticipating advisability of taking up English debt I had already informally sounded representatives of the trustees British bondholders and found that they were very willing sell entire British interests. Bonds redeemable at any time in pounds sterling have been selling at a third of face value in London.

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