422.11G93/1949

The Chargé in Ecuador ( Sparks ) to the Secretary of State

No. 610

Sir: I have the honor to refer to my despatch No. 604 of November 17, 1936,92 reporting my conversation with the Minister of Public Works relative to the news items which appeared in the local press indicating an intention upon the part of the Ecuadorean Government and the Central Bank of Ecuador to press the lawsuits pending against The Guayaquil and Quito Railway Company. The Minister of Public Works stated at that time that he was unaware of any change in the policy of the Government with respect to those suits or of any intention to take action pending the termination of the mission of Mr. Avilés looking to a settlement of the controversy. He added that if he learned anything in the matter he would immediately communicate with me.

This morning Mr. Ayala called me by telephone and stated in connection with our conversation the other day that the matter of the Railway is now entirely in the hands of the President. I can only interpret this message to mean that the President is contemplating some action contrary to the point of view of his Minister of Public Works. I intend to endeavor to make an occasion within the next few days when I may have an opportunity to elicit some information informally from the President with regard to his plans.

Respectfully yours,

Edward J. Sparks
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