The Minister in Ecuador (Long) to the Secretary of State
[Received August 27.]
Sir: I have the honor to report that Mr. Stokeley Morgan and I had a brief interview with the Minister for Foreign Affairs this morning.
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I called the Minister’s attention to the agreement of last November, included in an exchange of notes between Dr. Tobar and myself (see my despatches 1373 of November 12 and 1439 of December 564) under which the Government admitted its obligation to eliminate Sedta in return for assurances that other domestic services would be [Page 282] provided by Panagra or another company without German influence. Dr. Tobar readily admitted the Government’s obligation under that agreement.
Mr. Morgan has not been able to see the President since August 13 and is naturally somewhat discouraged as it becomes more and more apparent that the President has been unable to make up his mind what action, if any, he is prepared to take looking towards the elimination of Sedta.
I am in hopes that there will be a change in the situation within the next two or three days and that the President will decide upon a policy which will permit Mr. Morgan to enter upon the loan negotiations which are the object of his visit. …