822.796/138: Telegram

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

50. Your 67, May 24, 6 p.m. Please inform the appropriate officials of the Ecuadoran Government that the Export-Import Bank is prepared to finance the sale of two hydroplanes or amphibians to Sedta, with the understanding that this credit would be guaranteed by the Ecuadoran Government. It is understood, of course, that prior to concluding such an arrangement the Ecuadoran Government would take steps to acquire the ownership of Sedta, or at least a majority of shares, and to eliminate German personnel and interests from that company and from further aviation activities in Ecuador. If these steps are taken, and the new equipment is thereupon purchased with the aid of the Export-Import Bank, this Government will assist in getting pilots for the new service. This Government believes that in making Sedta a truly Ecuadoran company the subsequent expansion of national aviation in Ecuador will be greatly facilitated.

With regard to your 72, May 26, 4 p.m.,8 would the proposals thus far advanced by Campbell, in conjunction with the above, meet requirements of the Ecuadoran Government and achieve the desired objective?

  1. Not printed.