822.51/9–2947: Telegram
The Ambassador in Ecuador (Simmons) to the Secretary of State
419. Embassy records show US has moral commitment to finance completion Quevedo–Manta Highway as this seems to be a generally accepted point of policy. Financing should be for completion and not merely for assisting (reDeptel 289, September 26.)56
Johnkoski of PRA states project status same as last report. He recommends contract on per kilometer or unit basis but not cost plus. This point of view endorsed by Embassy. However, it is believed US [Page 698] objective namely goodwill and establishment of record for compliance with commitments will be lost if road not completely financed. Recommend sufficient funds be made available for that purpose. Ecuador probably would fail to put up funds to complete any lacking last section, appeal to US for extension of loan and be resentful if it was not obtained thus defeating objectives mentioned above.
Johnkoski stated today he felt that last hundred kilometer road should cost about $25,000 a kilometer to construct.
Embassy’s remarks above are made because of fact that estimates of amount needed are not based on thorough engineering studies (re Embassy’s despatch 5274, May 29, 1947).
- Not printed.↩