811.20 Defense (M)/5806: Telegram

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

227. Reference Legation’s telegram No. 215, March 19, 5 p.m.66 The Legation is informed that the Argentine Chargé d’Affaires67 has approached the Ecuadoran Government indicating that Argentina is very desirous to reach an early agreement regarding the purchase of [Page 398] Ecuadoran rubber. The Ecuadoran Government has been requested to submit terms under which it would be agreeable to establish a Government control and monopoly on the exportation of rubber including minimum f.o.b. Guayaquil price, the duration of the contract and the amount of tires it would expect in return for crude rubber. The Chargé d’Affaires indicated that Argentina would be prepared to establish immediately a credit for 1 to 2 million pesos Argentine as a guarantee for the payment of rubber shipped and further indicated that if the Ecuadoran proposals were at all reasonable very little would be required in the way of negotiations.

Based on prices of actual shipments during February and March it is not believed that a price of less than 50 cents per pound f.o.b. Guayaquil could be accepted by the Ecuadoran Government for crude rubber or maroma. Two shipments of washed rubber and pressed rubber were made during March at 72 cents f.o.b. Guayaquil.

It is understood that the Minister of Finance has indicated to the Argentine Chargé d’Affaires that for the time being he cannot make a definite proposition. It is felt, however, that action by our Government should be taken promptly.

  1. Not printed.
  2. A. Barbosa van Sice.