File No. 815.51/336.
The American Minister to the Secretary of State.
Tegucigalpa, April 18, 1912.
Sir: Supplementing my cablegraphic reply of the 13th instant, I have the honor to report that in compliance with instruction No. 55 of the 6th ultimo I have discussed the question of the loan convention pending in the Senate with both the Minister for Foreign Affairs and the President. As will have been observed from references made to this matter in previous despatches, it has been so constantly and persistently evaded by both the Foreign Office and the Executive as to make it evident that its discussion was not desired. In conversation with the President previous to the arrival of the Secretary of State at Amapala, he refused to commit himself in the matter, stating that the convention had been rejected here and withdrawn, according to report, from the Senate of the United States, and pleading the need of time to study the whole question of a loan and convention. Upon receipt of the cablegram above mentioned I had a further interview with the President, who has been confined to his bed since the 9th instant, and, by insisting upon a statement from him, secured his authorization of my reply above mentioned to said cablegram. The present Minister for Foreign Affairs has from his assumption of office as elsewhere reported, professed great friendship for the United States and has repeatedly stated to me that this country needs their assistance. Lie has talked more frankly and has seemed to see the needs of his country more clearly than any one else with whom I have discussed the matter. But he, too, has shown a certain disposition to avoid the question of a loan convention and to look for expedients to cure ills of the moment rather than an arrangement that will terminate the general situation.
This reluctance to take up again the loan convention need not be considered as due to any hostile disposition toward the United States. When it is recalled what feeling was displayed at the time of its rejection by the Honduran Congress and how the four deputies that voted for it were insulted and threatened with personal violence in the streets at the close of that session it will be understood that [Page 615] fear of public opinion may be, and probably is, the occasion of this attitude.
Both the President and the Minister for Foreign Affairs have always admitted the need of a settlement of the foreign debt and have both admitted to me that a loan for this purpose is necessary and cannot be made except under cover of a convention. I am tempted to hope, while careful not to permit myself to be too sanguine, that with patience and tact they can be convinced of the disinterested good faith of the United States and lead to make an arrangement advantageous to themselves and acceptable to us.
I have [etc.]