822.154/470

The Ecuadoran Ambassador ( Alfaro ) to the Secretary of State

[Translation]
No. 166

Mr. Secretary: By the Agreement dated October 28, 1940 between the Government of Ecuador and the Export-Import Bank of Washington,35 the latter established in favor of the Government a credit of one million one hundred and fifty thousand dollars ($1,150,000), of which nine hundred thousand dollars ($900,000) were allotted for the financing of the Pan American Highway in the zone included between the cities of Cuenca and Loja.

In as much as this sum came to be entirely invested, there was signed, on the 26th of January, 1943, a new Agreement between the Government of Ecuador and the Export-Import Bank of Washington,36 by which the amount allotted for the financing of said highway was increased by two hundred thousand dollars ($200,000).37

I am informed by the Ministry of Finance of Ecuador that the sums of money allotted for the above-mentioned highway are nearly exhausted, and that, in order to finish it, there will be needed, according to the estimates made, an additional new fund of one hundred and thirty thousand dollars ($130,000).

With these antecedents, I have instructions from my Government to request Your Excellency to be kind enough to recommend to the Export-Import Bank a favorable resolution of the request which the [Page 300] Government of Ecuador is now formulating for an increase of one hundred and thirty thousand dollars ($130,000) in the amount allotted to the highway program according to the Agreement of October 28, 1940 which was amended January 26, 1943.38

On this occasion I ought to comment on the importance which the above-mentioned highway has for the economy of Ecuador and particularly for the development of the southern provinces and the conclusion of which, that will definitively be effected by means of this last loan, is of vital importance for the utilization of the sections which have been constructed up to the present.

I thank Your Excellency in advance for the attention which you may be kind enough to lend this request and I take this opportunity to repeat the assurances of my highest esteem.

C. E. Alfaro
  1. Not printed; for negotiations leading to this agreement, see Foreign Relations, 1940, vol. v, pp. 874 ff.
  2. Not printed.
  3. The Vice President of the Export-Import Bank of Washington, in a letter of August 24, 1943 (822.154A/22), transmitted to the Department copies of an agreement of July 15, 1943 (not printed), whereby a credit of $1,200,000 was provided for another section of the highway from Tambo to Guamote and a new road from Tambo to Alfaro.
  4. The Commercial Attaché in Ecuador indicated in despatch No. 750, November 29, 1943, that the Export-Import Bank had given its approval on October 22 to this increase (822.154/375).