DEPARTMENT OF STATE DIVISION OF LATIN AMERICAN AFFAIRS Honduras which we are also en leavoring to settle.
In Guatemala the existing authorities desire recognition from this Government and are reported to be in great need of financial assistance.
While we have imposed no conditions regarding recognition, we have strongly urged humanitarian treatment of the government political adversaries and we have suggested that a settlement of the pending questions regarding the concession of the Electric Bond and Share Company and the concession of the International Railways of Central America for the construction of a line to the frontier of Salvador would make a favorable impression which would have some influence in our decision as to recognition.
If we assist Guatemala in obtaining a loan it is important that we should insist that a complete reform of the currency be one of the objects for which the loan is used.
In Salvador the loan contract with the National City Company has been signed and the contract will soon be placed before the Congress of Salvador.
The contract provides for the appointment of a Customs Collector nominated with the approval of the Secretary of State.
The Department has for some time been considering the desirability of a treaty with Salvador which would secure for us the favorable customs treatment now