422.11 G 93/1321

The Secretary of State to the Minister in Ecuador (Bading)

No. 396

Sir: The receipt is acknowledged of your despatch No. 373 dated August 15, 1924, with reference to the advisability of making representations to the Ecuadoran Government for its failure to live up to its contractual obligations to the bondholders of the Guayaquil and Quito Railway. It is noted that you have discussed the situation with Mr. Harman, president of the Railway Company, and that you are both of the opinion that nothing can be gained and much may be lost by making representations to the Ecuadoran Government at this time. You request instructions authorizing you to make representations should it become advisable to do so later.

In reply you are informed that the Department agrees with you that the present is not a desirable time to make the representations in question. However, it does not appear necessary to instruct you in advance. If a situation arises which calls for action on the matter, you should report the facts at once to the Department by cable together with your recommendations.

I am [etc.]

For the Secretary of State:
Joseph C. Grew