Foreign Relations of the United States, 1947, The American Republics, Volume VIII

822.01/8–2747

Memorandum of Conversation, by Mr. George H. Owen of the Division of North and West Coast Affairs

confidential

[Washington,] August 27, 1947.

Participants:	Señor Dr. Neftali Ponce, Ecuadoran Ambassador in Washington
	Mr. Sheldon Mills, Chief,8 NWC
	Mr. George H. Owen, NWC

Ambassador Ponce of Ecuador called at the Department of State this morning.

He inquired whether the Department had taken any decision with regard to the new government of Ecuador. He was told by Mr. Owen and again by Mr. Mills that a reasonable period of time was required before any decision with respect to recognition of the new government could be made.

The Ambassador later inquired of Mr. Mills whether, specifically, the Department takes the position that a problem of recognition exists or not. It was made clear to the Ambassador that in all similar changes of government the question of recognition does exist and that formal relations with Ambassador Ponce remain suspended until the new government is recognized.

The Ambassador then also inquired whether the Department had received any word regarding the attitude of the Rio Conference⁹ toward the new Government of Ecuador. He was told in reply that the Department had received no news from Rio on this point.

In the course of conversation it was pointed out to the Ambassador that formal business with the Embassy has had to be suspended and that there would be some delay in the carrying out of day to day business; that this includes transactions with the Export-Import Bank and contracts for the delivery of military supplies under the Interim Program. Señor Ponce said that he had received word from the Export-Import Bank today that the decision on the Quevedo Manta loan¹⁰ which was to be made today had been postponed. He said he has reported this to the Ecuadoran Foreign Office expressing his regrets.

When asked about his views on the overthrow of Velasco, Señor Ponce stated that the fundamental cause of the coup lay undoubtedly in a personal dispute between Velasco and Colonel Mancheno and that the change in Government could not be said to have been caused by any fundamental conflict of political parties. He stated his belief that a Presidential election would be held. He certainly left no impression that he was personally enthusiastic in support of the new government.

8. Mr. Mills became Assistant Chief on August 1 and Chief on October 19.
9. For documentation on this Conference, see pp. 1 ff.
10. For documentation on the financing of Ecuadoran economic proposals, see pp. 690 ff.