816.51/149: Telegram

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

19. Department is informed by Minor C. Keith5 that the National City Company consider counter proposal of the Government in its letter of April 5th to Keilhauer entirely unacceptable as it is contrary to the exchange of notes, but the company is prepared to consider any new counter proposal of Salvador which conforms to the exchange of notes; otherwise the company is not willing to make loan unless some other guaranty equally effective can be furnished by Salvador. Department, desiring the prosperity of Salvador and hoping for the rehabilitation of its finances, instructs you therefore to use your good offices in assisting the representative of Keilhauer to ascertain whether the Salvadorean Government is prepared to make a new proposal to the National City Company in harmony with the exchange of notes and, in helping him in such case, to obtain a statement of the proposal for the consideration of the bankers. You will take care not to convey the impression that you are pressing upon Salvador the plan contained in the exchange of notes as the plan or policy of the Government of the United States.

  1. Representative, with Mr. Keilhauer, of the Government of Salvador in its loan negotiations.