819.51/389: Telegram

The Minister in Panama (South) to the Secretary of State

56. Department’s 29, May 19, 5 p.m.37 Morales yesterday telegraphed the President as follows omitting to mention name of bankers interested:

“The contract for the loan was signed May 16 and the transaction held in reserve until the bankers consulted the Department of State. To-day I am in a position to give you the details as follows. The [Page 695] amount of the loan is $4,500,000; the rate of interest is five and one half per cent yearly; the term for redemption is 30 years; the revenues affected as guarantees are the interest of the constitutional funds and the unassigned portion of the annuity paid by the Panama Canal; the amortization will begin by the payment of the small sum of $33,500 the first year and will increase gradually in proportion to the diminution of the interest up to 1944. From this year on the total of the interest of the constitutional funds and the total of the canal annuity will be dedicated to the payment of interest and amortization. The bankers are buying the bonds at 93”.

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