818.51/1015
Memorandum of Conversation, by the Chief of the Division of the American Republics (Bonsal)33
The Costa Rican Minister came in to see me this morning. The Finance Minister, Señor Escalante, still feels that the nine-year credit which we offered is not wholly satisfactory. However, he has asked Francisco Calderón Guardia,34 who is in this country and who will be in Washington on Wednesday and Thursday35 to find out whether we could not increase the amount to $2,000,000, leaving the terms the same. The reason for this is that the taxes which it is proposed to encumber for this purpose (probably the tobacco and beer taxes) produce 2,000,000 colones per annum and would, therefore, warrant a larger credit than the $1,000,000 originally suggested. In other words, if these taxes are to be encumbered, the Costa Ricans want to get the maximum credit.
Please let me have an indication of your views as to the reply which we should make.