The Ambassador in El Salvador ( Thurston ) to the Secretary of State
[Received May 23.]
Sir: Supplementing despatch no. 1561, dated May 13, 1944,86 I have the honor to report that Mr. Renwick87 advised me today that the Fiscal Agent under the Salvador loan contract has filed a protest with the Salvadoran Government and with the Department of State88 against the proposed debt settlement under negotiation between agents of the Salvadoran Government and the Foreign Bondholders Protective Council Inc.
Mr. Renwick added that he has submitted a memorandum to the Salvadoran authorities on the subject (he stated he would give me a copy of the memorandum),89 suggesting that the proposed settlement be abandoned, describing the settlement as an ex-parte arrangement in which the bondholders had no voice, and urging that as a provisional measure service be resumed on the bonds on the basis of the Readjustment Agreement of April 27, 1936.