811.20 Defense (M)/7594: Telegram

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

487. Your 555 and 557 of July 6.81 Rubber Reserve agrees that premiums do not have to be deducted from unexpended balance of development fund but shall be paid to Ecuadoran Government independently of status of fund and used by Ecuadoran Government for financing the immediate expansion of production and improvement of quality of wild rubber in Ecuador. The amounts so paid should not be used by the Government to increase the price paid to producers, since this may throw out of line prices paid in Ecuador and in neighboring countries.

If it is necessary to obtain the signature of the agreement within the next day or two, you are requested to inform the Ecuadoran officials that this Government regards it as of the greatest importance that the agreement be concluded immediately. For a period of approximately a month the agreement is supposed to have been ready for signature and no action has yet been taken but instead additional suggestions put forward by the Ecuadoran authorities. In the meantime rubber shipments appear to be continuing to other countries. For instance Consul at Guayaquil in telegram 137 of July 182 reports a total of approximately 242 tons for shipment to Argentina, Chile and Mexico.…

Please advise triple priority when agreement has been signed so announcement can be made here.

  1. No. 557 not printed.
  2. Not printed.