The Manufacturers Trust Company to the Secretary of State

Re: Loan Contract between the Republic of El Salvador and Minor C. Keith, dated June 24, 1922, and Supplemental Contracts dated January 5, 1923 and September 28, 1923.

Honorable Sir: We are the successor Fiscal Agent under the above Loan Contract executed and delivered by the Republic of El Salvador under which there are now issued and outstanding bonds of Series A of the aggregate principal amount of $3,609,000., bonds of Series B of the aggregate principal amount of £893,830. sterling, and bonds of Series C in the aggregate principal amount of $9,010,300.

We understand that your Department is preparing to recognize the Martínez Government of the Republic of El Salvador.42 In this connection may we respectfully call your attention to our previous letters and formal notices to your Department, in particular those dated March 16, 1932, August 16, 1933 and September 21, 1933,43 relative to defaults made by the Republic of El Salvador in the fulfilment of its obligations contained in Articles III, IV, VII and VIII of the Loan Contract in that, among other things, the Republic had not paid or caused to be remitted the funds required for the service of the Loan. These defaults have continued since February, 1932, and additional defaults have since occurred. The latest defaults consist of the failure to remit or pay or cause to be remitted or paid the funds required for the service of the Loan on January 1, 1934.

We wish to invite your special attention to Articles IX and XIX of the Loan Contract of June 24, 1922 in which your Department is specifically mentioned.

At this time we, as Fiscal Agent under this Loan Contract, believe it our duty to request you to be kind enough to review the defaults under the Loan Contract and to take such steps as may be necessary to secure the observance of this Loan Contract and the preservation [Page 264] of the lien and chargé created thereby upon the customs revenues pledged under the Loan Contract.

Very respectfully yours,

Manufacturers Trust Company as Successor to Chatham Phenix National Bank and Trust Company, as Fiscal Agent under said Loan Contract dated June 24, 1922
J. Lawrence Gilson

Vice President
  1. See pp. 216 ff.
  2. None printed.