Foreign Relations of the United States Diplomatic Papers, 1938, The American Republics, Volume V

822.6341 South American Development Co./57

Memorandum of Conversations, by the Chief of the Division of the American Republics (Duggan)

[ Washington ,] January 31, 1938.

I talked with the Ecuadoran Ambassador⁴² on the telephone with regard to the South American Development Company. I told the Ambassador that the latest information we had received was to the effect that the company had been given until tomorrow to reply to the demands of the Ecuadoran Government. I stated that the Company maintains that it could not reply to these demands without consultation with the General Manager, Mr. Tweedy. I said that we had been informed that Mr. Tweedy was flying from Guayaquil and would arrive in New York within the next few days. I inquired whether the Ambassador had telegraphed his Government about this general situation following his conversation with Mr. Welles on Friday, January 28.

The Ambassador said that he had not telegraphed his Government and that, unfortunately, he had not sent the text of the memorandum since there had been no air mail, but that he was doing so today.

I then suggested to the Ambassador that in view of the urgency of the situation it would be deeply appreciated if he would send his Government a telegram at once setting forth the desirability of giving the company time to consider the propositions advanced by his Government in an orderly way. The Ambassador stated that he would send such a message.

February 1, 1938.

I saw the Ambassador today and gave him the further information with regard to Mr. Tweedy’s movements contained in Mr. Sparks’ memorandum of February 1.⁴³ I said that an additional forty-eight hours would hardly give the company the time it needed in order to consider the matter properly. At this point the Ambassador showed me the text of a telegram which he had sent yesterday urging his Government to grant to the company a sufficient delay in order to permit Mr. Tweedy to discuss the questions at issue with his principals in New York. Upon the Ambassador advising me that he had not received any reply to this message from his Government, I ventured the suggestion that he might send a further message reiterating his suggestions of yesterday and requesting to be advised of the action taken, in order that he might be in a position to inform the officials of the company. Capt. Alfaro did not indicate whether he would send the further message.

42. Colón Eloy Alfaro.
43. Edward J. Sparks, of the Division of the American Republics; memorandum not printed.