File No. 817.51/587a.

The Acting Secretary of State to the American Minister.

[Telegram—Paraphrase.]

See Department’s October 10. The Department is advised that the contract with the bankers was signed October 8, so that the Nicaraguan Government had no opportunity to cause insertion of the clause recommended by the Department.

It is, however, gratifying to the Department to learn from the bankers that by agreement with Señor Cuadra $400,000 has been set apart and will not be drawn against by Nicaragua pending arrangement with the Department of the Claims Commission matter.

Communicate the substance of this telegram to the Government of Nicaragua.

Moore.