816.51c39/281

The Vice President of the Manufacturers Trust Company (J. Lawrence Gilson) to the Secretary of State

Dear Mr. Secretary: As promised you, I am attaching herewith Memorandum of Facts50 in connection with the Republic of El Salvador Customs Lien Sinking Fund Bonds of 1922, Series A, B and C.

I regret the delay in forwarding this information to you, but its compilation has taken more time than I anticipated and I wished to have it as complete as possible when it reached your hands.

I believe that you will find this information of interest, and I feel confident that you will reach the conclusion that the Republic of El Salvador is financially able to meet its external obligations.

We have, as yet, received no remittances this year from the Republic on account of service of this loan, and I am fearful that the bondholders will not receive the full interest due on July 1st. It is very evident that funds which should accrue to the bondholders are being diverted by the Republic for purposes directly contrary to the terms of the Loan Contract.

I will appreciate very much your consideration of this matter and would respectfully suggest that the Department of State is now in a position where it can be of material assistance to a large number of citizens of this country who are owners of these bonds and are dependent upon them for a large part of their income.

Should you desire more copies of this Memorandum I will be very glad to forward them to you at any time.

With very kind personal regards, I am

Yours very respectfully,

J. Lawrence Gilson
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