The group of experts of the Government of the United States
which recently conducted an investigation in El Oro to assist in
determining the measures that would be required for the rehabilitation
work, was authorized to make immediate expenditures for particularly
urgent relief work, and this authorization was utilized for the purpose
of buying quantities of foodstuffs, tools and other necessities of life
valued at approximately $20,000 which were found to be urgently re-
quired in the El Oro area. It is felt that these expenditures were an
important contribution to the efforts of the Ecuadoran Government
to restore normal conditions in the Province.
  OTHER ARRANGEMENTS FOR COOPERATION OF AN ECONOMIC NATURE
                (INCLUDING HEALTH AND SANITATION)
  6) Discussions are now in progress concerning an agreementbetween
the Governments of Ecuador and the United States with respect to the
exportation to the United States of Ecuadoran rubber, and the con-
clusion of this agreement is regarded as an integral part of the pro-
gram of cooperation between the two countries. The offers of the
Government of the United States include the provision of an inde-
pendent fund for necessary expenditures in connection with the in-
creased exports of rubber from Ecuador.
  7) It is understood that the highway construction work at present
being carried out in Ecuador by the Ambursen Engineering Corpora-
tion with $900,000 in credits extended to the Government of Ecuador
by the Export-Import Bank, is at present progressing satisfactorily.
  8) It is understood that a large proportion of the $200,000 in credits
which the Export-Import Bank agreed to extend to the Ecuadoran
Government for the purchase of railway equipment has been com-
mitted for specific expenditures and that a considerable part of the
$200,000 has actually been expended.
  9) It is understood that work is progressing satisfactorily, under
the supervision of an expert formerly in the employ of the Government
of the United States, in the program of cacao rehabilitation and agri-
cultural experimentation which is being carried out with the credit
of $50,000 which the Export-Import Bank agreed to extend to the
Government of Ecuador for this purpose.
  10) Representatives of the Government of the United States are at
present studying the practicability of undertaking expenditures for
improved health and sanitation in the Salinas area,54 which expendi-
tures would supplement the grant of $2,000,000 for health and sanita-
tion in Quito and Guayaquil.

  63 See pp. 396 if.
  " For correspondence on the interest of the United States in this
area as a
defense site, see pp. 362 if.



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ECUADOR