422.11G93/1688: Telegram

The Secretary of State to the Minister in Ecuador (Gonzalez)

23. Reference your despatch 411, June 22, 1936. Please seek an early interview with the Minister for Foreign Affairs and say to him that it is the long-established policy of this Government to consider difficulties in regard to governmental securities held by Americans as primarily matters for direct discussion and settlement between the holders thereof acting through agencies of their own choice, and the governments which have issued the obligations. To provide a disinterested central organization to represent American holders of foreign securities, the Foreign Bondholders Protective Council, a nonprofit making organization, was formed in 1933 with the encouragement of this Government.70

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This Government, when suitable opportunity appears to offer, lends its good offices to facilitate discussions between interested parties. In accordance with this policy, and in view of the consideration which the Ecuadoran Government is now giving to the matter of the Guayaquil and Quito Railway Mortgage Bonds, you should state that your Government expresses the deep hope that the Ecuadoran Government will consult with the Council and receive its views prior to presenting any settlement to the bondholders.

In this relation please refer to diplomatic serials Nos. 2386 of June [January] 3, 1934,71 and 2661 of May 11, 1936, and mimeographed instruction of June 10, 1936.72

Please report results of your conversation briefly by telegram.

Hull
  1. See section entitled “Organizing the Foreign Bondholders Protective Council,” Foreign Relations, 1933, vol. i, pp. 934 ff.
  2. Foreign Relations, 1933, vol i, p. 939.
  3. No. 2661 of May 11 and Instruction of June 10 not printed.