816.51/1155

The American Ambassador in El Salvador (Thawston) to the Salvadoran Under Secretary of Finance (Bustamante)62

My Dear Mr. Bustamante: You were so good as to inform me, on the occasion of your recent call at the Embassy, that during your impending visit to the United States with the Salvadoran Economic Mission63 of which you are the Chief, you will take up the question of Salvador’s external debt. You expressed the hope that our Government authorities would support your proposals on the subject.

As I said to you then, I am confident that you will receive the most cordial and friendly support on the part of the authorities at Washington in the performance of the tasks that have been assigned to you. I should, however, make it clear that (as you perhaps already know) the policy of the Department of State does not permit it to negotiate specific plans on behalf of bondholders. This is a matter which primarily concerns the Salvadoran Government and the bondholders—and which, in consequence should be discussed directly between the competent Salvadoran officials and the bondholders or their representatives.[Page 336]In this instance, the matter might properly be taken up with the Foreign Bondholders Protective Council, Incorporated, 90 Broad Street, New York—an organization with whose standing I believe your Government is familiar.

Wishing you a pleasant and successful journey, and with kind regards, I am

Sincerely,

Walter Thurston
  1. Copy transmitted to the Department by the Ambassador in his despatch No. 370, May 14; received May 18.
  2. The Economic Mission was composed of Ramon Arturo Bustamante, Victor C. Barriere (Director General of the Budget), and Francisco Alfredo Mejia (member of the Committee for Economic Coordination of El Salvador)