422.11G93/1691: Telegram

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

30. Referring to my telegram No. 29, July 10, noon, the President informed me that he today telegraphed Sherwell of the Manufacturers Trust Company to confer immediately with the council and that he has suspended all proceedings pending the results of the consultation. He added that he desires to reach an amicable settlement and that he is convinced that this is feasible provided the bondholders are willing to accept the best terms that Ecuador can offer.

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Undoubtedly the recent resignation of Avilés has removed the cause for concern as to precipitate action. However, it has not lessened the determination of the President to dispose of the question at this time on the basis of Ecuador’s financial capacity. It is my opinion that the council should bear this in mind in its discussions.

Gonzalez