822.51/865: Telegram
The Minister in Ecuador (Long) to the Secretary of State
[Received May 5—7:35 a.m.]
38. After communicating to the Minister for Foreign Affairs substance of pertinent portions of the Department’s telegram No. 23, April 30, 2 p.m., he stated that schedule I included most articles of which there had been excessive importations: Excluding them the plan for doubling duties would probably have little tendency to remedy situation. The Foreign Minister is studying the problem and will offer some other suggestions early next week.
Dr. Tobar recognizes that fluctuation of sucre should affect imports but wondered to what extent and asked if we might make a prediction. I told him I had no idea but would ask the Department. Confidentially he added that his Government is anxious lest the commercial credit reputation of Ecuador suffer due to inability of merchants to cover dollar obligations at increasing cost. Likewise they desire to protect American exporters but latter must realize that delays in payment are certain and possibly substantial losses unless some remedy not apparent to this Government at the moment can be found.
The Minister for Foreign Affairs in a friendly fashion stressed compliance of present administration with payments on temporary loan of last year from Americans in Ecuador, stating that he felt favorable decision regarding cacao program, allocation for segments of Pan-American Highway or other constructive purpose would be generally [Page 860] beneficial and discourage the elements which seemed to delight in creating difficulties for the Provisional Government.