File No. 817.51/587.

The Minister of Finance of Nicaragua to the Secretary of State.

Sir: I am pleased to acknowledge receipt of your esteemed favor of the 6th instant.

Desiring to meet your wishes as expressed in your letter, I communicated with President Díaz asking his authority to so comply, as my former instructions were final and against the separation of any sum for any other object than the payment of the debts of the Administration. I regret to inform you that I have received a complete denial to my appeal in the cable which is given below:

It is impossible to separate the $400,000 for Mixed Commission. The urgent needs of the Administration would remain unsatisfied. It would mean nothing in payment of claims of mixed Commission. Moreover, the Congress does not grant right to include this condition in the contracts and therefore it should not be included in them.

To this I think it well to add that according to my own knowledge of the situation in Nicaragua acquired in the discharge of the duties of the office of Minister of Finance, to which I owe the honorable mission to this country conferred upon me by my Government, President Díaz has much reason for his denial. If this amount of $400,000 were separated, the economic situation of the Government would be in a worse predicament, as it would leave unprovided for the urgent needs of the Administration and sacred debts, to give preference to claims that, although just, are not of this important character. Also, [Page 1060] the force of the Administration would be broken if this were done, and in consequence thereof the public peace would be endangered.

With my highest consideration [etc.]

Pedro Raf. Cuadra.