File No. 817.51/868

Minister Jefferson to the Secretary of State


Department’s January 10, 5 p.m. After discussing fully provisions of the same with President Chamorro and the Minister of Finance we have concluded to request the Department to ask that such an arrangement as outlined in the Department’s January 10, 5 p.m., be entered into. While I am rather reluctant to approve the extension of time on the Ethelburga debt, I feel that on account of the decrease in the customs receipts and the internal revenue and also in view of the fact President Chamorro reports to me the pressing needs of his Government which amount to approximately 500,000 dollars in back salaries estimated it probably will be one of the best ways to aid his administration since both he and his Minister of Finance have promised me to faithfully cooperate with the Legation in affecting a reorganization of the public service.

Therefore I would suggest that the money held here by the Customs be turned over at once to the Nicaraguan Government.