Foreign Relations of the United States Diplomatic Papers, 1936, The American Republics, Volume V

422.11G93/1735b

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

No. 171

Washington, August 26, 1936.

Sir: There are enclosed, for your confidential information, copies of a memorandum⁸⁸ of a conversation with Mr. Walter H. Merritt,⁸⁹ regarding the Guayaquil and Quito Railway Company bond case, and of the Department’s letter to Mr. Merritt.

Upon Mr. Merritt’s arrival in Quito, you will please extend to him all proper assistance in his effort to obtain complete and accurate information regarding the present status of the case referred to. In view of the well-established policy of this Government regarding defaulted foreign securities,⁹⁰ as set forth in the Department’s circular instruction of May 11, 1936, (Diplomatic Serial No. 2661),⁸⁸ the Department desires that you confine such assistance principally to helping Mr. Merritt meet people who are in a position to give him the information he desires. You will not, therefore, take any other action regarding this matter without consulting the Department.

You will also advise the American Consul General at Guayaquil of Mr. Merritt’s arrival and repeat to him the instructions contained in the preceding paragraph.

Very truly yours,

For the Secretary of State:

Sumner Welles

88. Not printed.
89. Attorney representing bondholders.
90. See section entitled “Policy of the Department of State With Respect to Defaulted Foreign Securities Held by American Citizens,” pp. 149 ff.
88. Not printed.