Evening star., 1925-08-30
ECUADCR'S ENVOY
EXPLAINS MISSION
U. S. Financial Interests in His
Country Safe Under Present
Regime, Elizalde Says.

Rafael H Elizalde, Minister from
Ecuador. on a special mission to the
United States, yesterday sent to the
office of The Star the following state
ment:
Il am an admirer of the United
States in it's multiple forms of activity.
and, among these, one which has my
highest regard is the press. For this
reason, after reading the article
Seeks Recognition of Ecuador by
United State published in Thurs
days edition of The Star. feel obliged
to ask that several minor discrepan-
cies be corrected.
THE article gives the impression
that l have solicited from the Depart
ment of State recognition of the pro
visiona1 government of Ecuador. and
this is not exactly in accord with the
facts.
''Since the 29th of July last the De-
partment of State has recognized, as
de facto' authorities, the govern
ment which today is in power in Ecua-
dor, and this is sufficient to safe
guard the interests of commerce be-
tWeen the citizens of the two countries
and the friendly international rela-
lions that have always existed be-
tween Ecuador and the United States.
This is the real purpose of the mis-
The article stated that some OBJ
lection to the recognition had been
raised by American holders of bonds
IF the Guayaquil and Quito Railway
Co It also stated that about $50 ,00O.-
600 in bonds issued by this company
are held in the United States and that,
except for one year, interest payments
have not been made on these bonds
for 10 years.
+toi 10 CT OF oay1f /
would not be a reason against recog-
nttion but in favor of it, because re-
sponsibility for default in payment
belongs to the former governments
and because the principal object of the
new government of Ecuador is to put
IS house in order to pay foreign
creditors and give security to the
finances of the country. Proof OF this
IS the fact that one of its first acts
was to make an interest payment on
the salt bonds, and another step in
this direction was its bringing about
a settlement between the agricultural
association (Asociacion de Agricul-
tores) of Ecuador and the successors
to the Mercantile Bank of the Amer
fcas, of New York, a settlement by
which the latter will receive close to
three million dollars.
II welcome the opportunity that is
given me to make these statements.
THE issue of Guayaquil and Quito
bonds was not 100000, 900, but sl2,-
600, 900. Therefore S30,000.000 could
scarcely be held in the United States.
This company was responsible for the
service of its bonds, but it did not al
ways comply with this duty and the
government, as guarantor, has made
payments on the preferred bonds with
the greatest punctuality and the
other payments have been delayed be-
cause of disagreements between the
government and the company. Lately
the government paid $500, 900 for 26
per cent of the stock of this company,
and this gives the government control
of the company through ownership OF
rs per cent of the stock. 1t is to be
hoped that the obligations of the COM
pany to it's creditors will improve sub
stantially, for the new government of
Ecuador is taking the most efficacious
measures to this end. An American
expert. Mr.. John S. Hord, is the tech
nical adviser to the government for
the purpose of continuing the work
already assured of balancing the bud
get ad increasing the production, eff
ciency in collection and investment of
the revenue; improving, in short, the
economic and financial situation of the
country