The Secretary of State to the Ambassador in El Salvador ( Thurston )

No. 483

The Secretary of State refers to the Department’s instruction No. 463, dated January 6, 1944,76 regarding the readjustment of the foreign debt of El Salvador and encloses copies of a memorandum76 which the Foreign Bondholders Protective Council, Incorporated, is sending to the Salvadoran Under-Minister of Finance summarizing the Council’s understanding of the results of their conversations.

In a letter of January 13, 1944,76 transmitting the enclosed text77 to the Department, Mr. Dana G. Munro, President of the Foreign Bondholders Protective Council, commented as follows:

“One paragraph, number VII, is tentative because the arrangement to which it refers will require the approval of the Central Bank. I am writing Mr. Bustamante that if the arrangement referred to proves impracticable we would be willing to accept an arrangement where payments due on the unassented bonds under the 1933 arrangement would be paid at once and the coupons due from July 1, 1935 to January 1, 1938 would be redeemed over a period of three years ending July 1st, 1947.”

  1. Not printed.
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  3. Not printed.
  4. The memorandum supra.