840.51 Frozen Credits/10772: Telegram

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

552. Reference Embassy’s despatch No. 80, June 1458 and Department’s instruction No. 1573, December 14, 194259 regarding Economic Control Decree No. 854.

The Ministry Finance is drafting plans for forced sale of Saice and Ecupetrol and similar action expected for Casatagua properties. Some outside financing will undoubtedly be required by local interests in one or more of the cases. Instructions are requested as to whether the Export-Import Bank will undertake directly or through the Ecuadoran Development Corporation the necessary financing to eliminate Axis interests and to facilitate nationalization of Proclaimed List properties. Kinnear60 and Illingworth are now in Washington and it is hoped that a decision can be reached and a method of procedure established prior to Kinnear’s return to Ecuador.

  1. Not printed.
  2. Foreign Relations, 1942, vol. vi, p. 422.
  3. Edwin Kinnear, American Manager of the Ecuadoran Development Corporation.