Office of the Historian

817.516/220: Telegram

The Secretary of State to the Chargé in Nicaragua (Beaulac)

Washington, December 9, 1929—2 p.m.

171. Your 283, December 6, 4 p.m. Please speak with the President again and explain to him that the Department cannot under the circumstances endeavor to persuade the present bankers to continue their connection with Nicaraguan affairs. These bankers have definitely stated their intention of withdrawing and the new group who became interested in the situation through the Department’s efforts to help Nicaragua in this matter have already spent much time and incurred some expense in studying Nicaragua’s financial problems. Consequently it is only fair to permit them to present a plan for consideration and to see whether satisfactory arrangements can be made with them.

You may further explain that the Department could not carry on negotiations with the bankers on behalf of the Nicaraguan Government. It has endeavored in every proper way to facilitate their investigations and it hopes that they will soon be able to submit a plan as a basis of discussion with the Nicaraguan Government. If President Moncada does not wish the Nicaraguan representatives here now to continue negotiations with the bankers there would appear to be no reason why their proposals and recommendations should not be transmitted directly to him through the Nicaraguan Legation here or through you.

[Page 663]

While the Department does not feel that it can now ask the present bankers to continue their connection indefinitely it is prepared to ask them not to withdraw definitely from the bank’s management until a short time after December 31 if a delay proves necessary and advisable. It feels, however, that such a request can best be made when the negotiations with the other bankers are further advanced.

Please emphasize the fact that this Government desires to help the President in this matter in every proper way.

Tell the President that I shall send a reply by air mail in the very near future to his personal letters of December 2 and December 3, which have just reached me.75

Stimson
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