814.51/549
The British Ambassador (Howard) to the Secretary of State
Sir: I have the honour, on instructions from His Majesty’s Government, to draw your attention to negotiations which are now proceeding [Page 31] in Guatemala City between Mr. J. P. Armstrong, representative of the Council of Foreign Bondholders in London, and the Guatemalan Government with reference to the amortization of the arrear interest coupons on the four per cent External Debt of Guatemala.
The progress of the discussions on this subject which were initiated as far back as July last has been somewhat delayed owing to the political situation arising out of the death of President Orellana and the temporary assumption of office by General Chacón, which rendered the Guatemalan Government reluctant to consider the question until after the presidential elections.
The elections having now confirmed General Chacón in the Presidency the present moment is regarded as an opportune one for the resumption of negotiations—the success of which it is felt would be greatly promoted were the United States Representative at Guatemala City to lend to His Majesty’s Representative at that capital, and to the representative of the Council of Foreign Bondholders, the same general friendly support as His Majesty’s Representative in Tegucigalpa received from his United States colleague in his recent negotiations with the Honduran Government for the funding of the external debt of that country.2
In notifying you of these pending negotiations, I accordingly have the honour to enquire whether the United States Government would be prepared to instruct the United States Minister at Guatemala City to use his good offices with a view to promoting an understanding between the Guatemalan Government and the representative of the Council of Foreign Bondholders.
I have [etc.]