816.51/1174: Airgram
The Ambassador in El Salvador ( Thurston ) to the Secretary of State
[Received September 14—10 a.m.]
A–354. Department’s instruction No. 309, September 1, 1943 (file 816.51/1157). I informed President Martínez this morning that my Government had been gratified by Sr. Bustamante’s recent visit to the United States in connection with the Salvadoran foreign debt and regretted that the terms he offered to the Foreign Bondholders Protective Council had been such as to make a settlement impossible at that time. I added that we were greatly interested in obtaining an early adjustment and regularization of the debt problem and trusted that there might be an early resumption of negotiations with the Council.
President Martínez immediately assured me that this matter has been receiving the attention of his Government and that it has been decided to have Sr. Bustamante return to the United States in October with full powers to negotiate an agreement. The President implied that Sr. Bustamante will be authorized to propose a settlement on the basis of 50% of the contract interest on each series of bonds.