816.51/12–1445: Telegram

The Chargé in El Salvador (Gade) to the Secretary of State

339. In new instructions to Laxton, British Council agrees (1) to change of date to Jan. 1, 1946, (2) to funding bond interest of 3 percent but not 2 percent, and (3) to waiver of customs lien provided (a) lien immediately restored if Salvador borrows fresh money on any specific security whatever and (b) if Salvador borrows without giving security, it will affirm that the three series of the “existing loan rank senior to the new loan”. Before presenting these instructions to Salvadoran Govt, Laxton is thinking of cabling British Council to reconsider. Deptel 205, Dec. 13 is being studied.40

  1. Telegram not printed; it quoted a message from the Foreign Bondholders Protective Council to the Embassy (816.51/12–1345).