File No. 817.51/806a

The Secretary of State to Minister Jefferson


Nicaraguan Chargé d’Affaires and bankers urge upon Department payment from treaty proceeds of entire principal and interest bankers and National Bank loans and accumulated interest Ethelburga loan under extension agreement December 2, 1914. Chargé also insists on payment account of Amsinck with whom Nicaraguan financial agent contracted for full payment from canal funds of accounts due and upon which pledge Amsinck returned personal securities given by President Diaz. Upon presentation to Department of this agreement, agent was informed that Department regarded as premature any consideration of disposition of treaty funds prior to exchange of ratifications.

Appropriation not yet made by Congress.

Chargé states that retention customs revenue seriously embarrasses Government. Cable concisely your opinion thereon.