816.51/1–446: Telegram
The Secretary of State to the Chargé in Peru (Trueblood)
8. National Assembly of El Salvador on December 29 enacted legislation for the adjustment of the Salvadoran foreign debt on the basis of new bonds dated January 1, 1946 paying respectively 4% interest in exchange for present 8% bonds of Series A, 3% interest for 6% bonds of Series B, and 3½% interest for 7% bonds of Series C. The 8 years of interest arrears will be funded into new 3% bonds, having face value of 50% of the arrears.
This leaves Bolivia, Peru and Costa Rica as only American Republics which have not made some adjustment of their National bond service.41