The Acting Secretary of State to the Embassy in Ecuador

No. 135

The Acting Secretary of State transmits herewith for the confidential information and records of the Embassy a copy of the Department’s third person note to the Embassy of Ecuador in Washington and a copy of Statement LL–171 reporting changes [charges?] made in the account of the Government of Ecuador during the period from June 1, 1948 through June 30, 1948 under the terms of the Lend-Lease Agreement of April 6, 1942.2

It will be noted that this is a final statement of account and that, in view of payments already made, the last remaining obligation of Ecuador under the Agreement is $2,834.75.

The matter of the settlement for lend-lease vessels which was advised to the Embassy in the Department’s instruction No. 94 of July 23, 1948 is still awaiting the action of the Ecuadorans. Meanwhile the Ecuadoran proposal for the settlement of the lend-lease balance and the cash reimbursable transaction in sucres is being held in abeyance. Failure to accept these vessels under the terms offered may necessitate [Page 589] the adoption of other disposal plans which might involve the return of these units to a port in the United States at the expense of the Ecuadoran Government as specified in the Naval Charter Party Agreements under which their lease was effected. As the cost of such return would approximate the offering price the economic result would not be advantageous to Ecuador. The Department suggests that, in its discretion, the Embassy informally discuss with appropriate Ecuadoran Government officials the substance of these comments.3

  1. Neither printed.
  2. Foreign Relations, 1942, vol. vi, p. 379.
  3. Receipt of partial payment for the seven naval vessels in the amount of U.S. $16,317.44 was reported to the Department by Ambassador Simmons in despatch 36, January 12, 1949, not printed; receipt of the balance due of $3,182.56 was reported by Ambassador Simmons in despatch 337 of May 3, 1949, not printed (822.24 FLC/1–1249 and 822.24/5–349, respectively).