816.51/91: Telegram

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

29. Your September 1, noon.

The Department regards proposition as outlined by you as unduly onerous and likely to perpetuate the financial evils which have hitherto afflicted the Salvadorean Government. The Department feels that it would be contrary to the best interests of the country to enter into a transaction of this kind while a far more beneficial project is pending. You are authorized to express this view to the President, indicating the deep interest of the United States in placing the finances of Salvador permanently on a sound basis. The Department is informed that Mr. Keith has obtained a $250,000 loan for Salvador.