File No. 815.00/1134A.

The Secretary of State to the Special Commissioner.


Mr. Knox refers to the Honduran Loan Convention pending in the Senate and the Bankers’ Agreement and Fiscal Agreement which were executed February 15, and says the Department is unofficially informed of the indictment of Bonilla, Christmas, and others, by the grand jury at New Orleans for breach of United States neutrality statutes in the Hornet case. Mr. Knox informs Mr. Dawson that as the said judicial proceedings are quite independent of the Department it will hardly be necessary for him to explain that the situation referred to above will not influence the attitude of the Government of the United States in the impartial discharge of its good offices at the conferences where he will represent the United States and seek to adjust the differences existing between Gen. Bonilla and President Dávila.