File No. 817.51/523.

The Secretary of State to the American Minister.


Your February 2. The bankers have telegraphed to their Nicaraguan representative, Mr. Bundy Cole,1 with whom you will confer. You may inform the President of Nicaragua that, as far as this Department is aware, there is no foundation for the rumor that the incoming administration will change the present policy of the United States toward Central America. Brown Brothers inform the Department that unless the agreement of November 4, 1912—carrying the additional option on the remaining 49% of stock of the railroad and the National Bank—be approved by the Assembly, their exercise of the existing option on the remaining stock would result mainly in discharging Nicaragua’s debt to the bankers and would not make any large amount immediately available to Nicaragua. Although not promising to exercise these options, the bankers give the Department to understand that they wish to continue in Nicaragua and are actively investigating the desirability of purchasing the railway.

  1. Manager of the National Bank of Nicaragua.