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

No. 107

Sir: I have the honor to report that Doctor Miguel Araujo, Minister for Foreign Affairs, called on me this afternoon and reported the action of the Council of Ministers on the two questions I had discussed with him informally earlier in the week.

First, he stated that his Government was now ready to enter into conversations with reference to a new Trade Agreement with the United States.62

Second, in answer to my question with reference to an agreement on the Foreign Loan Contract, (Department’s instruction No. 39 of October 19, 1934) he said that inasmuch as a representative of the Bondholders Protective Committee was coming to Salvador early in December, (Department’s instruction No. 47 of November 22, 1934) the Council of Ministers has decided that they would like to conclude an entirely new and permanent agreement while he is here instead of extending the present temporary arrangement and that they would like to have my assistance in working out this new agreement.

I informed him that it was not a matter in which my Government was directly concerned but because citizens of the United States were holders of the bonds we would like to see their interests protected. In view of this, I told him that the negotiations should be carried on between his Government and the Bondholders representative and that I would remain outside. On his insistence that I lend my aid to the discussion, I assured him in very general terms that I was always ready to be helpful in any way possible and that my informal opinions would always be available.

In conclusion, I may say that this Government had practically agreed to extend the present temporary agreement for a year with the idea of postponing the discussions until after the inauguration of the new administration in March but the arrival of Mr. Lavis has caused them to change their minds.

Respectfully yours,

Frank P. Corrigan
  1. For correspondence concerning the trade agreement, see pp. 257 ff.