822.6341 South American Development Co./69½

Memorandum by the Under Secretary of State (Welles) to the Secretary of State

Mr. Secretary: The Ambassador of Ecuador left at my office today a copy of a cable he had just received from his Government, which reads in translation as follows:

“Please say to the Department of State that the Government of Ecuador has always appreciated duly the consistent just procedure of the American Government which has invariably been inspired in the ample and American policy of the good neighbor. The Government of Ecuador believes that the mistaken understanding of the measures which it had taken in the matter of contracts with foreign companies to the effect that the Government had undertaken these measures for the purpose of improving financial difficulties is probably due to malicious information given to it by the interested companies. Please confirm the declaration that the Government of Ecuador is proceeding through conciliating its policy under the law with the safeguarding of national interests which have been prejudiced and please assure once more the Government of the United States of the high esteem and fraternal sentiments of the Government of Ecuador.”

I will send for the Ambassador within a day or so and tell him that while we appreciate this message, it would not seem to remove the grounds for our disappointment that the Government of Ecuador had so misinterpreted our earlier communication.

S[umner] W[elles]