611.2231/238

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

No. 23

Sir: I have the honor to report that subsequent to preparation of despatch No. 16 of May 13, Department’s telegram No. 23 of May 14, 2 p.m. arrived indicating a unilateral note, as proposed by Dr. Banda, would not be acceptable.

On Monday the 16th, upon learning of this decision Dr. Banda seemed dismayed but eventually expressed his disposition to confer with the National Economic Council. This morning he called at the offices of the Council in company with Mr. McDonough but found only two of the five members. Mr. J. Federico Intriago and Dr. Mogollon were in Quito.

A presentation of the outstanding features of the proposed Trade Agreement was made by Dr. Banda, and listened to attentively by Messrs. Intriago and Mogollon, who said they could see no objection but asked for more details, which will be supplied without loss of time. The other members of the Council are to be contacted as soon as possible. It is hoped that within a week each of the five members will have received sufficient data to justify him in formally expressing his convictions.

Further reports will follow as negotiations progress.

Respectfully yours,

Boaz Long