422.11G93/1018: Telegram

The Chargé in Ecuador ( Belt ) to the Acting Secretary of State

Department’s March 27, 2 [1] p.m. Discussed question with regard to payment bonded indebtedness with Norton yesterday and he is of the opinion that Elizalde may possibly have misunderstood intention of Ecuadorean Government. Norton is of the opinion that it would be unadvisable to press for further payment at this time thus taking advantage of a technicality, provided Minister of Finance through Elizalde or this Legation confirms to the Department of State his recent statement to railway company that Ecuadorean Government will remit to London the additional sum of 80,000 pounds sterling during the month of June in order to meet payment on the coupon due next July.

Minister for Foreign Affairs on Friday informed me Elizalde misunderstood intention of this Government; that it had only obligated itself to pay one coupon which was more than covered by the [remittance] to London of the total amount of 80,000 pounds.

With regard to the source of this remittance Minister for Foreign Affairs stated this question had been explained satisfactorily to the Department by the Ecuadorean Minister.