822.796/147: Telegram

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

77. To my surprise Minister Plaza called here last night and stated he doubted Ecuador could buy Sedta as it did not have the funds, since the two trimotor Junkers were valued by Sedta at 1½ million sucres. Worse than that how would this country get rid of German personnel even if it found some way to buy Sedta. The Ministry of National Defense did tell me that Sedta a fortnight ago requested the Ecuadoran Government to acquire shares held by its citizens up to 51%, but stated that other 49% was not for sale—this Government declined.

The Ecuadorans’ indisposition or inability to acquire Sedta has not been clearly established, but uncertainty in this regard should be taken into consideration in connection with my telegram No. 75, May 28, 5 p.m.9

In order to obtain our objectives I believe a more realistic procedure must be followed and in this connection Campbell is today cabling his principals a suggested method for their consideration and possible discussion with you.

  1. Not printed.