824.51/174a: Telegram

The Secretary of State to the Minister in Bolivia (Cottrell)

6. Representatives of Equitable Trust have informed the Department that, although they were advised that the Government of Bolivia was taking steps to prepare a power of attorney authorizing the Bolivian Minister in Washington to sign the definitive bonds which are to be exchanged for the temporary bonds of the recent loan, they have now received a cablegram stating that the President of Bolivia has declined for the present to grant the power of attorney. The bankers state that the failure to appoint a delegate to sign the definitive bonds may become a matter of very serious consequence to the holders of the temporary bonds, that the second installment [Page 443] of interest is due on May 1, 1923, and that if the definitive bonds are not issued prior to that time the bondholders will be greatly inconvenienced in collecting their interest, and, furthermore, that the failure to issue the definitive bonds prior to the next interest payment date, as contemplated by the Trust contract, is very likely to cause comment and discussion in banking circles and bring about depression in the market value of these bonds and also may very seriously affect Bolivia’s general credit.

Consult bankers’ representatives and, in your discretion, orally and informally bring the bankers’ views in the matter to the attention of the President of Bolivia and express the hope of this Government that the question may be satisfactorily adjusted without loss or undue inconvenience to the holders of the bonds in this country.