File No. 815.51/338.
The Vice President of the Whitney-Central National Bank of New Orleans to the Solicitor for the Department of State.
Referring to our conversation on the subject of the $500,000 temporary loan to Honduras—in which you suggested that any differences pertaining to the loan agreement should be arbitrated by one selected by the Bank and one by the Republic, with the Secretary of State as umpire—President Bonilla cables as follows:
We would accept as supreme arbitrator the President of the Supreme Court of Justice of the United States of America.
Please wire me if, after consultation with Mr. Knox and others, in your opinion this would have the same effect as if arbitrator were the Secretary of State, and if it will furnish us all of the safeguards which you stated would be furnished under this plan. Please answer by wire at our expense.