DEPARTMENT OF STATE DIVISION OF LATIN AMERICAN AFFAIRS 3now received by several European countries which have made concessions to Salvador.
OF THE UN In Honduras the Department has been endeavoring to TAREHIVES LATE STATE bring about a financial reform which would make possible the refunding of the long defaulted foreign debt and a reestablishment of the Republic credit.
closely connected with the question of financial reform is the question of reducing the army and establishing a police force since the army is now the principal reason for the Republic financial difficulties.
The establishment of an adequate police force might also provide better protection for American interests which have in the past complained considerably at the lack of protection by the military authorities.
Because of its interest: in financial reform the Department has requested that it be kept informed regarding negotiations now pending between Honduras and certa in American banking interests.
In Nicaragua the United States has long maintained a rather unpopular government by keeping in the capital a guard of American Marines.
We have also established a measure of control over the finances of the Republic and have materially ass isted the Republic in placing its finances and its currency upon a very sound basis. Our participation