417.00/310a: Telegram

The Secretary of State to the Minister in Nicaragua ( Eberhardt )

[Paraphrase]

20. The bankers have shown us a telegram from the Collector General of Customs, received January 23, stating that the Nicaraguan Government proposes to reestablish the Claims Commission and issue internal bonds, interest and amortization which will be provided for by certain additional import and export duties. The bonds presumably will be used to liquidate the claims.

Discreetly investigate and report the plans of the Government with regard to reestablishing the Claims Commission and the payment of claims. The Department feels that the advisability of issuing a new series of internal bonds for the payment of claims is a very important matter and one to be decided upon only after very careful consideration, and it believes that the financial structure of Nicaragua should be made more simple and not more complicated.

Kellogg