822.51 Et 3/6: Telegram
The Secretary of State to the Minister in Ecuador (Bading)
15. Your telegrams 12, 13, 14.16
Please address following letter to the President:
“Under instructions from my Government I desire to point out to Your Excellency that the loan contract, as I understand, does not in its present form contain any provision for the payment of the debt of the Agricultural Association to the Mercantile Bank. The Government of the United States, however, has carefully noted the assurances contained in your letter of February 5, 1922, to Minister Hartman [Page 934]that ‘If the Government secures a foreign loan it will immediately pay half of the credit of the abovementioned bank.’18 My Government is therefore confident that, although the loan contract contains no provision on this subject, the Government of Ecuador will immediately meet half of the indebtedness in question in the event of procuring a foreign loan, and I have therefore been instructed to bring this matter to Your Excellency’s attention and to request that I be advised of the measures that your Government proposes to take in conformity with the assurances heretofore given.”
Report President’s reply by cable.