611.2231/396: Telegram

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

42. Department’s No. 27, May 29, 4 p.m. After acquainting the Minister for Foreign Affairs with the contents of Department’s telegram under acknowledgment Dr. Tobar said that he would send me a note by tomorrow making the proposal of 40 million sucres and I replied that immediately upon receipt I would send him a note containing the points mentioned in Department’s telegram No. 27 and it was my understanding that this would complete the negotiations for the time being. He did not ask about publicity being given to the exchange of notes nor did I refer thereto.

Dr. Tobar stated that yesterday, after the new Minister of Finance had taken office, the position of the Central Bank with respect to the 30% plan was fully explained to him. Some of the Chambers of Commerce have requested that it be not effective until July 1 instead of June 1 as originally intended. At this moment it is not possible to predict the outcome.