File No. 817.51/873

Minister Jefferson to the Secretary of State

[Telegram]

The matter of forming a commission was discussed again yesterday with President Chamorro and his legal advisers, Doctors Pedro Gonzalez and Bargemen Kena Diaz. They strongly advised against including in the plan the reopening of the Mixed Claims Commission awards and cited Article 1 decree creating Mixed Claims Commission and Article 171 of the Nicaraguan Constitution. Besides they thought it might reopen the question of monopolies and concessions.

They agreed to comply with the provisions of Article 3 of the Bryan-Chamorro Treaty subject to the following conditions:

1.
That the Government be permitted to use from the three million dollars one hundred thousand dollars for the purpose of constructing colleges, the money to be equally divided between the cities Leon Granda and Managua, Chamorro being very anxious to have this done if possible:
2.
That four hundred thousand dollars of the Canal money be placed their disposal for the payment of pressing debts, back salaries, etc., and to pay amount due by the Government for tobacco: and
3.
That the balance of the money be exclusively applied to the Nicaraguan debt as may be determined by the commission and in accordance with Article 3 of the Treaty.

Hope to have bill presented to Congress not later than Monday.

Jefferson