Foreign Relations of the United States Diplomatic Papers, 1941, The American Republics, Volume VII

822.151/63

The Acting Secretary of State to the Secretary of Commerce ( Jones )

Washington , July 23, 1941.

My Dear Mr. Secretary: I wish to acknowledge receipt of your letter of July 16, 1941⁵ suggesting that the consent of the Government of Ecuador be obtained to permit the assignment to this Government of the lease of Albemarle Island, in the Galápagos group, for which Commander Foster has an option⁶ and the installation by this Government of facilities useful for defense purposes on that island. You indicate that under these conditions you might feel justified in advancing the funds required to construct the desired water systems at Quito and Guayaquil.

Although any suggestion you make is, of course, always welcomed by me, I feel obliged to tell you in all frankness that in this case the proposal you recommend is open to so many and well-founded objections as not to warrant its further consideration.

In the first place, the President, for a number of reasons, has not considered it desirable for this Government to initiate negotiations with the Government of Ecuador for the purpose of obtaining a lease on the Galápagos Islands. Those reasons still seem entirely valid today.⁷

In the second place, from the standpoint of the maintenance of our extremely friendly and helpful relations with all the American Governments on matters of hemisphere defense, it would not, in my opinion, be desirable to make any approach to the Ecuadoran Government for the purpose you indicate. For example, as long as the Ecuador–Peru boundary dispute⁸ is outstanding, any action by this Government to secure a base on the Galápagos Islands would immediately be suspected by Peru as involving a pledge of support by the United States to Ecuador in connection with the boundary problem. It is indispensable to our security that our relations with all the American countries remain on their present friendly footing, and that no step be taken that would impair this relationship even with one country.

Finally, it does not seem wise to link together the granting of credits for social purposes with the obtaining of defense facilities. I am glad to observe, however, that you are prepared to consider, in the granting of credits, reasons of a broad general character.

I take the occasion to express the very sincere hope that you will find it possible to proceed to construct the water systems at Quito and Guayaquil. I, of course, do not suggest the extension of credits except on a sound basis, but from what I am informed it should be possible to work out some plan for constructing these water systems that would permit repayment of the credits.

Within the last few days the Ambassador of Ecuador has presented to the Department a memorandum submitting a specific proposal for the construction of a waterworks at Quito. A copy of this material is enclosed⁹ for your consideration. Other copies have been transmitted directly to the Export-Import Bank.

Sincerely yours,

[File copy not signed]

5. Not printed.
6. Paul F. Foster (one-time Lieutenant Commander) was said to have had a 30-year lease on the entire Albemarle Island and to have sponsored a plan, technically commercial, to exploit sulfur deposits and establish an observation post as a defense measure. See Foreign Relations, 1940, vol. v, pp. 850 ff.
7. For correspondence concerning the interest of the United States in the Galápagos Islands for defense purposes, see pp. 261–269.
8. For correspondence concerning this dispute, see vol. vi, pp. 212 ff.
9. Not printed.