The Minister in El Salvador (Corrigan) to the Secretary of State

No. 91

Sir: I have the honor to refer to the Department’s airmail instruction No. 39 of October 19, 1934, with which was transmitted a copy of a memorandum of a conversation held on October 16, 1934, between Mr. F. J. Lisman, of the Bondholders’ Protective Committee for the Republic of El Salvador Bonds, and Assistant Secretary Welles, as well as a copy of a communication which Mr. Lisman stated was being forwarded by airmail by the Bondholders’ Protective Committee to the Minister of Finance of El Salvador.

In accordance with the Department’s instructions, I called yesterday on the Minister of Foreign Affairs and inquired, orally and informally, what the views of his Government were as regards the proposal of the Bondholders’ Protective Committee that in the best interests of [Page 275] El Salvador and of the bondholders an extension of the existing Agreement of May 5, 1933, be effected to cover the calendar year 1935.

Minister Araujo agreed that some definite policy should be established for the future of this loan contract, but that in view of the short time between now and the expiration of the temporary agreement of May 5, 1933 and in consideration of the present internal political situation with a presidential campaign in progress, probably the most feasible thing would be an extension of the present temporary contract. He further informed me that he would discuss that matter with the President and also with the Minister of Finance and would let me know their views within a short time.

Respectfully yours,

Frank P. Corrigan