816.51C39/432: Telegram

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

1. Your 61, December 31, 3 p.m.23 Mr. Fred Lavis of the Bondholders Protective Committee called at the Department yesterday to say that at the last moment the Salvadoran Government had stated that its agreement for settlement of the regular issues of the external debt was dependent upon the cancellation of the “C” scrip.

Mr. Lavis was informed that the negotiation of a settlement regarding the scrip, just as a negotiation regarding the regular funded debt issues, was a matter between the Government and the holders thereof or their representatives. You may, however, inform the Salvadoran authorities that this Government has learned with pleasure of the substantial progress that has been made for the settlement relating to the external funded debt, and that it hopes that an agreement satisfactory to both participants to the negotiations may be arrived at.

  1. Not printed.