Office of the Historian

811.20 Defense(M)/11094: Telegram

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

Washington, January 7, 1943—9 p.m.

18. Refer Embassy’s 1062, December 22, last paragraph; Department’s 947, December 28,2 fourth paragraph. It has been agreed between the Department, Board of Economic Warfare and Defense Supplies Corporation that the proposed contract between Defense Supplies and the Ecuadoran Development Corporation3 should take the form of a letter-agreement similar in form to that between the Ecuadoran Development Corporation and Rubber Reserve.4 A draft of this letter-agreement has been worked out by the interested Government agencies, and the Department has indicated its approval. It is being taken to Quito by Mr. Clark Byse of the BEW, who took an active part in drawing it up. Mr. Byse left by plane Wednesday afternoon, January 6, for Quito.

The Department agreed to the proposal from BEW that Mr. Byse go to Quito at this time, due to our feeling that he could be of help to the Embassy in the negotiations for the over-all agreement and for [Page 285] the agreement between Supplies and the Development Corporation. While he has been authorized by Defense Supplies to approve such amendments to the above-mentioned documents as may be necessary, such authorization, of course, does not give him authority to negotiate. Defense Supplies Corporation understands fully the Department’s position that negotiations are in the hands of the Embassy. Byse’s role is limited to that of consultant to the Embassy. This statement of his function supersedes any he may have received from BEW or Defense Supplies. Because of Byse’s experience, however, you will probably find that he can be of assistance in working out solutions to pending questions.

Mr. Samuel Miller5 is hereby authorized by Defense Supplies Corporation to sign on its behalf the proposed letter-agreement between Defense Supplies and the Ecuadoran Development Corporation. So far as Defense Supplies is concerned, Mr. Byse is authorized by Defense Supplies to approve such amendments as may be necessary in the proposed letter-agreement and in the proposed agreement with the Ecuadoran Government.

Please acquaint Mr. Miller and Mr. Byse with such parts of this telegram as you think necessary.

Hull
  1. Neither printed.↩
  2. The Defense Supplies Corporation operated under the Department of Commerce. The Ecuadoran Development Corporation was a government instrumentality of Ecuador.↩
  3. Not printed; for the terms of the rubber agreement, see telegram No. 256, April 20,1942, Foreign Relations, 1942, vol. vi, p. 400.↩
  4. Representative of the Defense Supplies Corporation and the Board of Economic Warfare in Ecuador.↩