822.617/40

The Ambassador in Ecuador (Scotten) to the Under Secretary of State (Welles)

Dear Sumner: I have sent up in the normal way my despatch No. 272 of July 21,25 setting forth the extreme irritation evidenced by Arroyo regarding the apparent reluctance of the Rubber Development Corporation to give his Government a free hand in using the premium payments on rubber.

It is my understanding that the purpose back of these premium payments was not only to expedite the extraction of rubber but to create a certain amount of good will. As you will see from my despatch and the previous correspondence about events before I arrived here, the method of handling these premium payments seems to have created everything but good will.

Lowry, the local Rubber Development man, is entirely cooperative and would like to have this matter handled in accordance with Arroyo’s wishes. There is no trouble on that score, therefore, and it is [Page 294] really a Washington problem. Is there anything you can do about it?28

Very sincerely yours,

R. M. Scotten
  1. Not printed.
  2. In a letter of August 11 the Under Secretary of State informed the Ambassador that telegram No. 595, August 4, infra, answered this letter in general.