815.515/136: Telegram

The Minister in Honduras (Erwin) to the Secretary of State

80. Reference Department’s 86 of March 29, 10 p.m. Legation believes it not desirable to make suggestions to Honduran Government or the banks that the effective cash reserves of banks be reduced. See page 3 line 1, Legation’s 2808, March 20.50 Rumored possibility of banks closing. Also rumored possibility of resignation of Acting Minister of Finance51 if decree No. 5952 does not effect solution. Situation extremely critical. Recommend Treasury Department and USED53 be notified and arrangements made so that shipments of United States 50-cents pieces can be made by airplane within the next few days if necessary.

  1. Not printed; the Minister is referring here to a paragraph of the despatch which explains why it was dangerous and legally impossible for the Banco Atlántida to purchase any more foreign exchange (811.51/5970).
  2. Urbano Quesada.
  3. Decree No. 59, described by the Minister in his despatch No. 2807, March 20, 1943 (811.51/5968), authorized the importation of $1,500,000 in United States 50-cent and 10-cent pieces.
  4. United States Engineers Department.