Memorandum by the Chief of the Division of Latin American Affairs, Department of State (White) for the Secretary of State

The Panaman Minister called today to state that Dr. Eusebio A. Morales, the Minister of Finance of Panama, will arrive in Washington tonight and that he would like to bring him in at the regular diplomatic hour tomorrow for a moment to present him to you.

Dr. Morales is given the rank of Envoy Extraordinary and Minister Plenipotentiary for the purpose of negotiating a loan of not more than four million, five hundred thousand dollars for road construction in Panama. He is accompanied by Señor O. A. Vallarino and Señor Juan Morales R. as first and second secretaries respectively, and also by Mr. R. K. West, American Engineer in charge of road construction in Panama, as technical adviser. Señor Alfaro [Page 691] stated that Mr. West will be charged with conferring with the War Department regarding the roads contemplated in order that Panama may find out which ones may be considered of strategic importance, so that they may make proper arrangements for adequate bridges to support heavy army lorries.