File No. 817.51/588.
The American Minister to the Secretary of State.
Managua, October 13, 1913.
Department’s October 10 and October 11. President Díaz emphatically declares it impossible to accede to Department’s suggestion relating to the $400,000, asserting that such legitimate expenses as unpaid salaries of Government employees and rental of Government buildings practically equal the disposable funds of the loan, and that neither Chamorro nor Cuadra was authorized to agree to set aside the $400,000.
However, President Díaz will agree to the following: If back salaries and current expenses shall not have exhausted all disposable funds, he will be [omission] to consider with the Department an appropriate expenditure of the balance; but he refuses to bind himself in the sense indicated in the Department’s telegrams referred to. He promises that, in any event, he will inform the Department before drawing against the $400,000.