422.11G93/1714: Telegram
The Secretary of State to the Minister in Ecuador (Gonzalez)
28. Your 37, July 29, 8 a.m. The Department had held a further conversation with the Ecuadoran Minister and has again laid before him the desirability of consultation with the Foreign Bondholders [Page 548] Protective Council in connection with any proposal for the settlement of the default of the Guayaquil & Quito Railway. The Department endeavored to impress the Minister with the fact that it would be in the interest of his Government for the FBPC to be in a position to recommend to the bondholders acceptance of any settlement which it might find itself unable to do if confronted by a fait accompli in important particulars. In this connection specific reference was made to the suit of the Banco Central against the Railway, but no request was made of the Minister that the Government refrain from continuing the suit.
The FBPC has been apprised of the contents of the note from the Minister of Foreign Affairs transmitted by your despatch 452 of July 21,82 requesting the Council to appoint a representative to discuss the Railway matter with the Government.
- Not printed.↩