File No. 817.51/835

The Acting Secretary of State to Minister Jefferson


Nicaraguan Chargé d’Affaires has twice been to Department and stated he has had instructions from his Government to discuss with Department the matter of payment from three million dollars canal fund of Ethelburga interest in order that customs receipts might go to the Government.

Cuadra represents economic situation Nicaragua as extremely serious on account of reduced customs receipts. He says that President Diaz is in favor of payment of interest from the three million.

Please cable your views as to this matter and any further suggestions you might be able to make in regard to relief of present situation.