The Secretary of State to Senator Couzens
My Dear Senator Couzens: In response to your letter of October 29, 1923, enclosing a page from The Nation of October 24, containing an article regarding the Salvador loan, I take pleasure in sending you the following facts regarding the relation of the United States Government to this loan:
On July 17, 1922, the American Legation in Salvador received from the Government of Salvador a note informing the Legation of the signature of the loan contract and stating that the Government of Salvador would cooperate with the Government of the United States and with the bankers, in carrying out the stipulations of the contract relating to the appointment and removal of the Collector General of Customs to be appointed in case of default, and regarding the settlement of disputes. The American Minister replied to this note on the same date stating that the Government of the United States had taken cognizance of the terms of the loan contract and that the Secretary of State was prepared to carry out the stipulations with reference to him in Articles IX, XIX and XXI of the loan contract in the event that it should be necessary to do so.[Page 826]
Article IX of the contract in question provides that any dispute between the parties to the contract shall be referred to the Chief Justice of the Supreme Court of the United States through the Secretary of State, and that, if the Chief Justice shall decline or be unable to act, the Secretary of State may designate another member of the federal judiciary of the United States to act in his place. Article XIX provides that, in case of default by the Republic upon its obligations, the Fiscal Agent of the loan, with the concurrence of the Secretary of State, shall select two individuals, of whom the Government of Salvador shall appoint one as Collector General of Customs. The article also provides that the Fiscal Agent may request the removal of the Collector General under certain conditions. Article XXI provides for communication to the Department of State as well as to the Minister of Finance of Salvador and the Fiscal Agent, of the rules and regulations made by the Collector General and of his monthly and annual reports.
The text of the exchange of notes has not been published by the Department, but if you would be interested in seeing the notes I shall take pleasure in having them made available for your inspection whenever it may be convenient for you to visit the Department.
I am enclosing for your information a copy of a statement regarding this loan which was given to the press on October 18, 1923.6
I am [etc.]