File No. 817.51/585.
Brown Brothers & Co. and Seligman &
Co. to the Secretary of
State.
New York,
October 8, 1913.
Sir: Replying to yours of the 6th instant1 enclosing carbon copy of a letter addressed by you to
Señor Pedro Rafael Cuadra, Minister of Finance of Nicaragua, we beg to
say that at the signing today of the contracts between the Republic and
ourselves, Mr. Cuadra was unwilling to have the suggested provision
incorporated.
We have, however, a letter from Mr. Cuadra, of which we enclose a copy
herewith, in which he states that he will have a conference with you on
this subject in a few days and that meanwhile the amount to be deposited
with us for account of Nicaragua will not be drawn against by Nicaragua
below $400,000 pending adjustment of this matter with you. May we ask
you to advise us of any adjustment which may be so made?
Very respectfully yours,
Brown Brothers & Co.
J. & W. Seligman & Co.
[Inclosure.]
The Minister of Finance of
Nicaragua to Brown Brothers &
Co. and J. W. Seligman & Co.
New York,
October 8, 1913.
Gentlemen: I am in receipt of a letter
from the Secretary of State under date of the 6th instant in which
he suggests that a provision be inserted into the General Loan
Contract which will provide for the setting apart of $400,000 of the
loan for the account of the “Mixed Claims Commission,” and in this
connection I take note of the fact that you have a communication
from the Secretary of the same date, in which he sends you copy of
his letter to me. I regret that I cannot consent to the
incorporation of such provision in the contract. When this
suggestion was made at an early stage of these negotiations I then
objected to it on a number of grounds then stated, all of which I
repeated to Mr. Bryan, and then an understanding was arrived at
between us to the effect that while such provision should be omitted
from the contract, the subject matter of the Mixed Claims Commission
would be arranged on a basis as to amount and method of payment that
would be satisfactory to the Secretary of State at Washington, and I
propose in perfect good faith to do this, and to that end I will
have a conference with Mr. Bryan in a few days, and meanwhile let me
say that the amount to be deposited with you for the account of
Nicaragua will not be drawn against by Nicaragua or by me on behalf
of Nicaragua below $400,000 pending adjustment of this matter with
the Department of State. When the matter is adjusted you will of
course be informed of it.
I remain [etc.]
