File No. 817.51/369.
The American Minister to the Secretary of State .
Managua , February 14, 1912 .
The Nicaraguan Government and the bankers are about to conclude an agreement satisfactory to both regarding the prompt execution of plans for the currency and banking operations, the bankers to make an additional loan of $500,000, and also to pay monthly $30,000 from the customs receipts, the bankers receiving, among other things, an option to purchase 51% of the Lake steamers and of the Pacific Railroad, now operated by the Nicaraguan Government. In the opinion of the currency experts, this option includes the franchise to operate steamers from Managua to Greytown. The exercise of this option when possible, and the canalization of the existing waterway—which with the Pacific Railroad would form a transcontinental line—have been recommended to the bankers by Mr. Harrison. According to present plans, I am informed, the new contract when authorized by the National Assembly will be signed by Castrillo in the United States under a power of attorney.