File No. 839.00/1720.

Chargé Johnson to the Secretary of State.

[Telegram.]

In compliance with your instructions dated July 16, 4 p.m. I have talked plainly with Arias and three of his leaders in a friendly manner as well as one Vidal leader. Vidal was arrested on his return here and is a prisoner. I also despatched a telegram to Horacio Vasquez at Moca and sent similar telegram to each American consular representative in this country with instructions to bring telegram to attention of proper persons and anticipating Vasquez telegram might be inaccurately published by recipient I ventured to give a copy to press myself as an open letter to leader of opposition. Telegram is a combination of excerpts from “Wilson plan”, your April 9, 7 p.m., and your July 16, 4 p.m. Publicity has the approval of Government. President now acquiesces in your views as to dictatorship. Government has not revealed to me definite plan as to Arias but with arrival recently of Enrique Jiménez some change in the Ministry imminent after adjournment of Congress.

Have made both verbal and written protest against diversion of funds. Administration of army and republican guard inefficient and wasteful but impossible to determine yet the ability of the Government to cope with situation as its seriousness not yet fully gauged nor effect yet known carrying out your instructions will have. Important leaders have announced stand against revolution and situation improved Puerto Plata; more serious in East. No doubt however of magnitude and wastefulness of suppressive effort already made and of considerable disorganization of Government finances which will result even if disorders abate.

Johnson.