822.51 Et 3/14: Telegram

The Minister in Ecuador ( Bading ) to the Secretary of State

18. Department’s 15, October 26, 4 p.m. The President stated that the present loan was merely to consolidate foreign debt and pay off domestic debt in order to better economic conditions of the country. The Government would not receive a cent in cash and it was impossible to increase the amount because of lack of funds for the service. In case another loan were obtained later, the debt would be taken care of. Perhaps even a loan would be made for that specific purpose guaranteed by 3 sucres tax but first the amount of the debt must be determined between the association and the bank by agreed-upon arbitration or lawsuit. He added that the debt once the amount is settled is recognized by the Government and will be paid.