The Secretary of State to W. A. Harriman and Company, Inc., New York City

Gentlemen: The Department has received your letter of the 21st instant37 stating that you are negotiating for the purchase of an issue of Thirty Year five and one-half per cent External Secured Sinking Fund Gold Bonds of the Republic of Panama, of the aggregate principal amount of $4,500,000. You state that these bonds are to be specifically secured by the assignment of the net income from the Constitutional Fund of $6,000,000, now being administered by William Nelson Cromwell, as Fiscal Agent of the Republic of Panama, and invested in first mortgages on real estate in the City of New York, and by the annuity of $250,000, payable to the Republic of Panama in perpetuity on February 26th in each year, subject, however, until November 1, 1944 (or until the earlier satisfaction of the trust indenture of November 2, 1914, under which The Farmers’ Loan and Trust Company is trustee) to the prior assignment to The Farmers’ Loan and Trust Company of $190,259 of such annuity. You submitted a copy of the proposed contract and asked to be informed whether the United States Government acquiesced in the purchase of the proposed issue secured as outlined in the proposed contract.

In reply I beg to state that this Government, in the light of the information now before it, has no objection to offer to the purchase of the proposed issue.

I am [etc.]

For the Secretary of State:
William Phillips

Under Secretary
  1. Not printed.