Mr. Baker to Mr. Gresham.
Managua, Nicaragua , October 24, 1893 .
(Received November 13.)
Sir: I carried out my intention of leaving San Jose, Costa Rica, on the evening of the 18th, reaching Punta Arenas on the evening of the 20th. I sailed from there on the following morning by Pacific Mail steamer and arrived in Corinto Sunday afternoon, the 22d.
At that place I found a very uneasy condition of public feeling. The air was full of rumors of an impending revolution and reports that General Zelaya had assumed dictatorial powers and has placed in confinement or banished a large number of prominent citizens of the opposition party. I was also shown a copy of a decree, of which I inclose a translation.
The main points of this decree, issued by the Constituent Assembly, are to suspend individual guarantees, to establish martial law, to empower the President to raise forced loans, and to authorize him to imprison or banish those convicted or suspected of intention to change the present order of things.
I arrived in Managua last evening, and this morning had a conference with President Zelaya. He assured me that but five citizens in all—two from this place and three from Granada—had been placed under arrest, and I found this statement to be correct. The President’s explanation of the reasons for the decree was that a large number—between 3,000 and 4,000—of arms were missing, and were thought to be secreted with a view of being used in an attempt to overthrow the present Government. He claimed also to have strong evidence of the existence of a conspiracy intended for the destruction of the present peaceful condition of things.
In the same conversation the President intimated that the purpose of the administration was to place an export tax upon coffee, as has recently been done in Costa Rica. He also assured me that in levying the forced loan which is provided by the decree, Americans and other foreigners doing business in this country would be exempt.
It has been rumored that the constituent convention would provide, in the new instrument, that all foreign citizens should take the oath of allegiance to this country, and should agree not to call upon their home Government for protection. This the President denies absolutely, but explains that hereafter all persons entering into contracts with this Government for the purpose of doing Government work, would be required to enter into such an agreement. He assured me also that it is the earnest wish of the Government to encourage the immigration of enterprising people of means who are willing to engage in the development of the country, and that every reasonable encouragement would be held out to such.
I beg, etc.,