Memorandum of Conversation, by Mr. Henry Dearborn of the Division of North and West Coast Affairs

Participants: ARA—Mr. Briggs
Ambassador Scotten
NWC—Mr. Flack
NWC—Mr. Dearborn

A memorandum written by the Ecuador desk officer54 was read in which it was pointed out that the negotiations with Ecuador for a base in the Galápagos and for an Eximbank loan were not as favorable as [Page 1022] they appeared on the surface. It was indicated that failure to clarify certain points immediately might result in the collapse of the negotiations. Ambassador Scotten agreed with the memorandum without reservation.

It was agreed that the following objectives should be accomplished as soon as possible: (1) to determine how much the United States would be willing to pay for a base in the Galápagos Islands; (2) to determine the source of the funds to be paid for the base; (3) to discover from the Eximbank exactly what it understood its position to be under the aide-mémoire signed in Quito on September 1, 1945; (4) to determine the exact relationship of the “loan”, the payment for the base, and the treaty for the use of the base; (5) to bring the Ecuadoran understanding of the loan into conformity with our understanding of it.

Following the above discussion the participants went to Mr. Braden’s office where, in the presence of Mr. Braden and Mr. Butler,55 the situation was outlined again. It was agreed that at the earliest possible moment a meeting should be held with Mr. Wayne Taylor of the Eximbank and soon thereafter with appropriate military officers looking toward the clarification of the above enumerated matters.

  1. Not printed.
  2. George H. Butler, Chief. Division of River Plate Affairs.