EL SALVADOR



  The contract with the Salvadoran Government was finally signed at
11: 30 a. m. Saturday, August 22, by Mr. 1Holt and Mr. Daniel Fran-
cisco Montalvo, Chief Clerk of the Ministry of Agriculture. Only
one or two changes, of a very minor nature, were made on the original
form of contract, and Mr. Holt and Mr. Dack expressed entire satis-
faction with the result of their stay in San Salvador and with the
cordial cooperation extended to them by Government officials and
private businessmen.
  The original copies of the contract, in Spanish and English, bearing
the signatures of Mr. Holt and Mr. Montalvo, will be forwarded as
soon as they are received from the Salvadoran Ministry of Foreign
Affairs, together with the copy of the Governmental decree putting the
contract into force.
  Respectfully yours,                     OVERTON G. ELLIS, JR.


LEND-LEASE AGREEMENT BETWEEN THE UNITED STATES AND EL
             SALVADOR, SIGNED FEBRUARY 2, 19425
  [The Lend-Lease Agreement between the United States and El
Salvador, signed at Washington February 2, 1942 (not printed), pro-
vided that El Salvador was to repay 54.88 percent of the scheduled
cost (about $1,640,000) of the armaments and munitions transferred
by the United States to El Salvador in installments for a total of
not more than $150,000 before January 1, 1943; $300,000 before Jan-
uary 1, 1944; $450,000 before January 1, 1945; $600,000 before Jan-
uary 1, 1946; $750,000 before January 1, 1947; or $900,000 before
January 1, 1948. The agreement, otherwise, is substantially the same
as the draft of the basic agreement printed in Foreign Relations,
1941, volume VI, page 139.]


AGREEMENT BETWEEN THE UNITED STATES AND EL SALVADOR
REGARDING CONSTRUCTION OF THE INTER-AMERICAN HIGHWAY
  [For text of the agreement effected by exchange of notes, signed
at Washington January 30 and February 13, 1942, see Department
of State Executive Agreement Series No. 294, or 56 Stat. (pt. 2)
1842.]

'For previous correspondence respecting the Lend-Lease Agreement, see For-
eign Relations, 1941, vol. vII, pp. 310 if.



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