File No. 417.00.

The Secretary of State to the American Minister.


The Department is convinced of the wisdom of establishing the tribunal proposed in general terms by Martínez in his note to Dawson November 5, 1910. Further consideration suggests the following specific plan.

A commission of three persons acting as one tribunal, one to be a Nicaraguan, one a citizen of the United States recommended by this Government, both appointed by the Government of Nicaragua; and an umpire appointed by the Department of State.

The initial presentation of each case to be before the tribunal so constituted and heard in its entirety by the tribunal.

A majority vote of the tribunal to be sufficient for a decision in all cases presented.

Inasmuch as claims of other aliens than Americans may go before the commission, the Department is convinced that such a constitution would disarm criticism, as all parties would be better satisfied if the Department should appoint the umpire than if he were appointed by accord of the two appointees of the Nicaraguan Government.

You will at once begin to arrange with the foreign office for the creation of a tribunal, according to the plan above outlined, and will inform the Department what compensation the Nicaraguan Government propose to allow the commissioners.