822.51 Et 3/26
The Ambassador in Great Britain (
Kellogg
) to the Secretary of
State
London
,
January 24,
1924
.
[Received February 5.]
No. 35
Sir: In reply to your telegram No. 383 of
December 17, 5 p.m., 1923, concerning the attitude of the Guayaquil
& Quito Railway Co. toward the proposed loan from the Ethelburga
Syndicate to the Government of Ecuador, I have the honor to forward
herewith copies of Foreign Office Note No. A 355/3/54, dated January 22,
1924.
I have [etc.]
[Enclosure]
The British Secretary of State for Foreign
Affairs (
McDonald
) to the American
Ambassador (
Kellogg
)
[
London
,]
January 22,
1924
.
No. A. 355/3/54
Your Excellency: I have the honour to
acknowledge the receipt of Mr. Post Wheeler’s note No. 1160 of the
18th ultimo, in which he was good enough to inform me of the
attitude of the Guayaquil and Quito Railway Company towards the
contract between the Government of Ecuador and the Ethelburga
Syndicate.
- 2.
- It appears that when the agreement of 1908 was made the
bondholders of the railway were represented by the Council of
Foreign Bondholders, acting in conjunction with the Committee of
First Mortgage Bondholders. The Council of Foreign Bondholders
now state that the Ethelburga Syndicate is acting in an entirely
friendly manner and fully recognizes the rights of the
bondholders under the arrangement of 1908.
- 3.
- By clause 25 of the new loan contract a portion of the
proposed new issue is appropriated to the purpose of converting
and withdrawing outstanding bonds of the External Debt of
Ecuador. If this is carried out, the existing hypothecation in
favour of the present bonds will of course be at an end, and I
am informed that any such conversion will only be carried out
with the sanction of a public meeting of the bondholders.
I have [etc.]
(For the Secretary of State)
R.
Sperling
