812.77/1204: Telegram
The Chargé in Mexico (Boal) to the Secretary of State
[Received July 7—2:01 a.m.]
178. With reference to my telegram 172, June 29, 7 p.m., Beteta who is a member of the board organizing the new autonomous Department of the National Railways has indicated informally that the basis for adjustment with the bondholders is expected to be tentative agreement reached with their representatives a few months ago.
However, Lockett also learns from personal letter from Laylin83 that Mr. Lamont plans to have funds now in hands of Committee distributed immediately in view of apparent failure to reach any agreement in the direct debt negotiation with Suarez. It seems likely that this step will prejudice chances of either favorable or early settlement for railway bondholders.
- John G. Laylin, of the firm of Covington, Burling, Rublee, Acheson & Shorb.↩