The Acting Secretary of State to the Chairman of the Bondholders Protective Committee for the Republic of El Salvador ( Lisman )

Sir: With reference to the assistance which has been given by the American Legation in San Salvador to facilitate conversations between the Government of El Salvador and your Committee, I should be pleased to receive information from you on the following points:

Is it contemplated that your Committee will deduct on account of its expenses and compensation 15 per cent of the cash payments made on coupons under the temporary agreement which it is understood is being negotiated at the present time?
Does your Committee plan to include in the permanent revised contract it intends to negotiate with the Salvadoran Government any provision for, or otherwise provide for, any deduction on cash payments which may be made under the terms of that contract, and if so, in what amount?
Does your Committee, upon the completion of the permanent revised agreement, plan to return to the depositors the bonds it now holds in deposit, and thereupon terminate the Committee’s existence?
Does your Committee intend to seek the inclusion in the proposed permanent revised agreement of a provision which would have the effect of depriving non-depositing bondholders of whatever benefits [Page 571] may accrue from the agreement, or which would tend to prevent them from exercising their rights as bondholders under the original loan contract?

I should be pleased to hear from you in relation to these matters at your early convenience.

Very truly yours,

William Phillips