611.2231/438: Telegram
The Minister in Ecuador (Long) to the Secretary of State
[Received May 10—10:10 a.m.]
46. After discussing with the Minister for Foreign Affairs the substance of Department’s telegram number 27 of May 7, 6 p.m. it was [Page 861] apparent that he has no desire to terminate trade agreement but will make proposals under article XIII. However such proposals if applied probably would not materially restrict imports for several months and Ecuadoran Government anxious to avoid undue commitments by local merchants and probable resulting delays in payment to American exporters.
I suggest that Commerce Department warn exporters of existing situation indicating that owing to shortages in Ecuador’s export crops and excessive imports during first 4 months of 1940 the sucre had weakened and it would seem wise to restrict credits and shipments to Ecuador for 2 or 3 months until availability of new crops relieve exchange situation. Source of this report should not be revealed.
After full discussion Minister Tobar approves this plan in the hope that it may check imports more quickly than proposals he will soon make.