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

Participants: Mr. Wayne Taylor, President Exim Bank
Mr. Machold,
Ambassador Scotten, American Ambassador—Ecuador
Mr. Stenger, ED41
Mr. Dearborn, NWC

Ambassador Scotten called on Mr. Wayne Taylor this morning to discuss the construction of the Manta–Quevedo road in Ecuador. He left a memorandum with Mr. Taylor to the effect that the bank should be urged to extend credit to Ecuador sufficient for the completion of this road in view of the “black eye” which would be given to American enterprise, in general, in Ecuador if this particular project were not finished.

Mr. Taylor said that he had just received a letter dated November 21 from Ambassador Galo Plaza in which the Ambassador asked for an additional credit of $780,000 to complete the Guamote–Tambo road (a link in the Pan American Highway). Mr. Taylor said he would rather extend credit for work on the Pan American Highway than for the Manta–Quevedo road. Ambassador Plaza then said that his Government would see to the completion of the latter if the bank would make the necessary funds available for the former. The bank is already committed to a credit of $1,200,000 with regard to the Guamote–Tambo Highway but the Jones Construction Company has said that it will need $780,000 more to finish the project.

Ambassador Scotten remarked that since under Ambassador Plaza’s proposal the Manta–Quevedo road would be finished, he would not press the point made in his memorandum. Mr. Taylor thought that it would be a good idea to make the extension of credit of $780,000 dependent upon a promise from the Ecuadorans to finish the Manta–Quevedo road.

  1. Jerome J. Stenger, Division of Foreign Economic Development.