740.00112A European War, 1939/17981: Airgram

The Secretary of State to the Ambassador in Ecuador ( Long )

A–144. Reference is made to discussions with the Ecuadoran authorities which are now in progress relative to the tightening up of the Ecuadoran freezing controls. Information available to the Department indicates that Ecuadoran banks have for some time felt themselves beyond the reach of the Proclaimed List and have continued to make loans to Proclaimed List firms in Ecuador. A specific example of such a loan is contained in your despatch no. 3526, September 16,15 wherein you mention a loan by the Banco de Préstamos to Jeremías y Robinson, although it is not completely clear whether this loan was made prior to the date when Jeremías y Robinson was included on the Proclaimed List.

It is obvious that the policy of the Ecuadoran banks to continue to make loans to Proclaimed List firms sustains the existence of those firms and consequently nullifies one of the objectives of the Proclaimed List. It is suggested that if you have not already done so, you should bring this matter up in your present discussions with the Ecuadoran authorities to the end that appropriate measures will be taken to prevent Ecuadoran banks from continuing to make loans to Proclaimed List firms.

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