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

Participants: ARA—Mr. Briggs
A-Br—Mr. Wright90
OFD—Mr. Luthringer
ED—Mr. Fetter91
ED—Mr. Stenger92
NWC—Mr. Schnee
NWC—Mr. Dearborn

A meeting was held in Mr. Briggs’ office this morning to discuss our financial relations with Ecuador. There was no meeting of the minds between OFD and ARA officers present, except on the point that the Eximbank should hold discussions with Ambassador Plaza [Page 878] in an attempt to reach an understanding on the Bank’s over-all relationship with Eucador.

Mr. Briggs and Mr. Wright reviewed numerous reasons why this Government should assist Ecuador. Added to the usual points made, it was stressed that we were trying to make it possible for the US Army to remain in the Galápagos, while we were at the same time denying Ecuador economic help, and that this latter attitude might well frustrate our efforts toward the desired military arrangement. Mr. Briggs and Mr. Wright emphasized that, in their opinion, a combination of all the factors involved justified US assistance to Ecuador at this time.

The OFD representatives did not show any inclination toward changing the position which they adopted prior to the turning down of the H. T. Smith loan by the Eximbank on June 5th. Mr. Luthringer stated that he saw no possibility of any readjustment of our commitments to Ecuador which would make it possible for us to extend credit both for the completion of the Manta-Quevedo road and for the financing of the Smith proposal.

  1. James H. Wright, Special Assistant to the Assistant Secretary of State for American Republic Affairs.
  2. Frank W, Fetter, Director of the Office of Financial and Development Policy.
  3. Jerome J. Stenger, Special Assistant, Division of Investment and Economic Development.