818.51/992: Telegram
The Minister in Costa Rica (Scotten) to the Secretary of State
[Received 9:12 p.m.]
279. Referring to my telegram no. 267, May 27 [23], 2 p.m., I have received from the Minister of Finance a letter written with the approval of the President requesting the experts referred to in the Department’s 195, May 21, 10 p.m. The letter adds that the President considers that in order to avoid erroneous interpretations which would be inconvenient for both Governments the present negotiations for the $1,000,000 credit should be completed before the experts are appointed (obviously the Costa Rican Government wishes to avoid creating the impression that our Government had made the sending of the experts a condition for the granting of the credit).
The Minister of Finance again urged in a personal conversation consideration by the Eximbank of his proposition of May 18 [8]. He called my attention to the fact that the proposition embodied in the Department’s 195 would necessitate the Costa Rican Government establishing a new source of revenue to meet the service charges on the loan whereas the proposition of May 8 would not require such new revenue being established.
In spite of the many accusations, whether true or false, of financial mismanagement on the part of this administration I feel that the ready acceptance by this Government of the experts suggested by the Department is a real evidence of a willingness to have the state of Costa Rican finances [apparent omission] close by impartial observers and a definite evidence of a willingness to cooperate with us. For this reason and also due to the fact that with the probable withdrawal of the banana boats contemplated in the Department’s 196 of May 22, 3 p.m.,30 Costa Rica will undoubtedly pass through very difficult times, I consider the Department might very properly request the Eximport to give favorable consideration to Escalante’s negotiations.
Copy of letter will be sent by air mail.
- Not printed.↩