Foreign Relations of the United States Diplomatic Papers, 1940, The American Republics, Volume V

822.51/856: Telegram

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

Quito , April 25, 1940—10 p.m.
[Received April 26—9:50 a.m.]

31. Provisional President^38a has just informed me that Central Bank will probably have to announce tomorrow or next day that it will temporarily suspend sale of dollar exchange to commercial banks.

Dr. Cordova apprehended that this announcement would produce economic panic, at least a run on sucre, with possible political disturbances of communistic character. He thought that situation might be partially relieved if the announcement could be made that exchange expert was to be offered to the Central Bank;³⁹ that economic adviser⁴⁰ would arrive to consult with Finance Minister; that cacao experiment would be undertaken and above all an announcement that construction of Pan-American Highway would be undertaken; if indeed any of these are true.

My letter of April 22⁴¹ to Mr. Welles⁴² gives only a partial outline of present emergency. Early telegraph reply will be appreciated.

Long

1. Andres F. Cordova.
39. In June 1940 Professor Frank Fetter was appointed technical adviser to the Central Bank of Ecuador.
40. Mr. Harold Glasser of the Treasury Department was detailed as adviser to the Ecuadoran Ministry of Finance in July 1940.
41. Not printed.
42. Sumner Welles, Under Secretary of State.