File No. 817.00/1575, 1579.

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I have fully confirmed the former report that Estrada’s deed was done in a fit of drunken insanity, with the advice of Moncada. Estrada is still at Corinto. Everything is quiet. Mena has turned back all troops marching on Managua. Diaz is recognized as President, and the Diaz Government is especially anxious to go on with the program as arranged. No anti-American sentiment apparent here.

I am assured the Assembly will confirm Diaz in the presidency according to any one of the following plans which the Department may indicate, namely:

1.
Recognize Díaz without further action; or
2.
Declare the presidency vacant and elect Díaz; or
3.
Declare the presidency vacant because of Estrada’s action, Díaz succeeding by virtue of being Vice President.

A war vessel is necessary for the moral effect.

Northcott.