884.6461 Tsana Dam/16a: Telegram

The Secretary of State to the Chargé in Great Britain (Atherton)

214. An Associated Press despatch datelined New York November 3 and carried by morning newspapers today reports that the J. G. White Engineering Corporation of New York has negotiated $20,000,000 contract with the Ethiopian Government for construction of Lake Tsana dam and that London despatches say report has caused considerable surprise in British official circles. You will probably be able to obtain full text of despatch in London.

For your information in this matter and for such use as you may consider advisable:

Martin, mentioned in your despatch 2104 August 19th,23 was received by me September 14th. Amongst other matters he mentioned that he hoped to interest American capital in this project on the following basis: an American company to float a bond issue sufficient to finance the construction of the dam, the Ethiopian Government to conclude an agreement with the British and Egyptian Governments whereby a fair price would be paid for irrigation water made available by the dam, such payments to cover interest and amortization charges on bond issue. I replied that I saw no objection to his discussing the matter with American capitalists. On October 19th when calling to take leave of me Martin mentioned that he had succeeded in interesting the White interests and that they were disposed to consider undertaking the necessary financing and construction work provided the Ethiopian Government could conclude a satisfactory international agreement. This is all I know of the matter.

Martin sailed for England on the Olympic23a October 29th.

Kellogg
  1. Not printed.
  2. Marginal note on file copy states: “This should have read Laconia. NE/GW.”