811.20 Defense (M)/6402: Telegram

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

344. Embassy’s telegram 271, April 8, 9 p.m. At a meeting this afternoon in the office of the Minister of Finance, Minister of Agriculture,72 Miguel Aspiazu and Pedro Leopoldo Nunez, representing the Chambers of Agriculture in Guayaquil and Quito, respectively, it was agreed in principle to contract with the United States through the Rubber Reserve Company for the sale of all Ecuadorean rubber for a period of 5 years in accordance with the terms provided in the Department’s telegram 256, April 20, 11 p.m.

We were requested to present a draft of the contract, which Rubber Reserve Company wishes to sign, in order that a detailed provision might be discussed. In this connection, the group desired a copy of a contract signed with some other American Republic which would serve as an indication of the conditions which are being granted. There should also be an indication as to who will act for Rubber Reserve Company in signing any contract.

In addition the group desires information on the following points:

What technical or advisory assistance will be given in the formation of an organization to implement the contract.
A definition of the “essential needs” of Ecuador for manufacture of rubber since Ecuador feels that it must be able to count on receiving tires for its public transport system. Information is also required regarding the manner in which tires are to be made available for private automobiles and an indication of the basis used for distribution in the United States. It is hoped that a specific quota on a moderately liberal basis can soon be announced.
Information regarding the manner in which payments will be made from the allotment of $500,000 as well as information as to any [Page 402] controls or accounting which will be required. Ecuador desires to be assured that a substantial portion of the amount will be available on signature of the contract.

  1. Ricardo Crespo Ordóñez.