422.11G93/1047: Telegram

The Secretary of State to the Ambassador in Great Britain (Davis)

5790. Department informed that Foreign Office contemplates approving proposed foreclosure proceedings by Council of Foreign Bondholders in behalf of British Bondholders of the Guayaquil and Quito Railroad. Officially bring to the attention of Foreign Office fact that Ecuador has been remitting large sums for bond service, that the Railroad is depositing net earnings, that the Government and the Railroad have adjusted their differences, that the physical condition of the property is being improved with increased earnings and economies in operation, that the approval of foreclosure would imperil a large investment of American capital and nullify negotiations with the Ecuadorean Government extending over several years and undertaken for protection of both British and American investors, and that approval by the British Government would be viewed with considerable concern by this Government. Wright38 familiar with this case.

  1. J. Butler Wright, Counselor of the Embassy at London.