File No. 817.51/440.
The American Minister to the Secretary of State.
Managua, May 22, 1912.
The Minister of Finance and the Nicaraguan member of the Mixed Claims Commission came to me today by the President’s direction to [Page 1101] urge the need for $900,000 gold at once to tide over the present crisis. Of this sum $650,000 are for. “gold debts” payable without reference to Mixed Claims Commission; $200,000 for arrearages in salaries to employees who threaten a strike that would be serious; and $50,000 miscellaneous.
The proceeds of the Ethelburga settlement will not go to the Government, nor will it be granted any future loans until January.
I suggest three bases for discussion: (1) an advance to Nicaragua of proceeds of Ethelburga settlement; or (2) a new loan based on collection of the internal revenue under Dr. Thayer; or (3) the exercise of the option to purchase the Government railroad for $1,000,000 cash.