File No. 817.51/544.

The American Chargé d’Affaires to the Secretary of State.


The President of Nicaragua writes me as follows:

I earnestly request you to transmit the following to Washington because our present situation is rapidly becoming critical as after June 30 the temporary [Page 1043] arrangement with the bankers will cease and we shall no longer receive the proceeds of the customs collections:

“According to the reports of my representatives at Washington it appears that the bankers’ hesitancy is due to the disinclination of the Department to define its attitude.”

The pressure by German and British syndicates is making the position of the President almost untenable, he tells me.