822.24 FLC/5—748: Telegram

The Acting Secretary of State to the Embassy in Ecuador

restricted

101. Reur despatch 414 dated May 7, 1948 and A–72 dated May 22, 19481 (from Brown, Acting, for Simmons) OFLC proposed to offer to Ecuador the seven vessels included in your despatch 414 for the total sum of $19,500. This sales price has been developed in accordance with the pricing factor being uniformly applied to all countries in pricing Lend Lease vessels coming under the Naval Charter Party Agreements. The preference of OFLC is to make an initial offer of these vessels at the price being uniformly applied to other American Republics. As a matter of information this sum is less than what comparable ships could be purchased in the United States and Is less than what it would cost to return these ships to the United States in the event of their return in accordance with the applicable [Page 586]provision of the Naval Charter Party Agreement. Formal offer to sell at $19,500.00 will be made to the Ecuadoran Naval Attaché in Washington concurrently with the release of this cable. Department requests that Embassy stress to Ecuadorans importance of prompt action on this matter.

Lovett
  1. Neither printed.