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

Participants: Ambassador Robert M. Scotten, American Embassy, Quito
Mr. Joseph Flack—NWC
Mr. Henry Dearborn—NWC

Mr. Flack telephoned to Ambassador Scotten at Quito this morning and informed him that the Secretary of State had sent a letter to Mr. McCabe, Foreign Liquidation Commissioner, instructing him to turn over all that property at Salinas which the War Department had declared surplus to the Commission. Mr. Flack read the pertinent part of this letter and told the Ambassador that this had been quoted by telegram to the Foreign Liquidation Commission’s representative in Panama, whom Mr. McCabe directed last night to follow out this instruction. Ambassador Scotten replied that he was delighted with this news since he had been very much worried by the possibility that the ceremony at Salinas on February 1 might become involved in all sorts of complications.

Mr. Dearborn told Ambassador Scotten that he had nothing to worry about since the Secretary’s letter to Mr. McCabe was in the nature of a directive and since Mr. McCabe had already instructed his man in Panama to turn over to Ecuador all that property declared surplus by the War Department.

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Ambassador Scotten said that he was sending a telegram this morning with respect to an editorial by Drew Pearson regarding the Galápagos; the article was quoted in Quito newspapers, but the public “reaction” had not yet been determined.

Ambassador Scotten asked Mr. Dearborn to do all he could to get action from FP with respect to the employment of Mr. Godoy as a telephone technician in the Embassy.