The President of the National City Company (Mitchell) to the Secretary of State
[Received June 14.]
Sir: Since last fall the Salvador Government has been in negotiation with us for a loan which, according to a note addressed to the State Department by the Salvador Government on October 20, 1921,6 was to be based on an American Customs Administration.
After more than six months of negotiation, during which we had prepared with the concurrence of the State Department and the representatives of the Salvador Government a contract which goes into the reorganization and readjustment of Salvador’s finances, the Salvador Government rejected our proposal and abandoned the principle to which it had committed itself through its original note to the State Department.
I write to inform you that after having taken under consideration certain modifications suggested by the Salvador Government, we notified the representatives of the Government on June 5 that we could not accept the modifications proposed and that we would not care to proceed with further negotiations unless Salvador were prepared to accept the basis of its original request to the State Department.
Very truly yours,