822.51/1017: Telegram

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

94. Embassy’s 96, February 3. On the basis of Lowry’s description, it is not apparent to the Department that the road construction proposed by the Minister of Finance has direct connection with rubber production, and hence it appears that premiums would not be expended “in the development of the production of wild rubber” as [Page 287] provided in the rubber agreement. If that is the case, this Government could not agree to the proposed use of the premium payments. In the absence of forceful reasons for the construction of these roads, it seems clear that the engineers requested by the Minister could not be made available and that in any event it is probable that it would be impossible to obtain the necessary equipment.

Hull