File No. 817.51/876

The Secretary of State to Minister Jefferson


Department’s January 25, 5 p.m. Your January 26, 5 p.m. Chamorro has telegraphed Cuadra that he will seek opportune moment for presenting matter Financial Adviser to Congress. As this assurance has now come it is felt that 250,000 dollars should be paid [Page 1117] from Canal fund to Government of Nicaragua it being understood that it will be used in payment of pressing Government indebtedness and back salaries of Government employees in accordance with conditions to be agreed upon by Minister of Finance and Ham. You may therefore address a note to Minister for Foreign Affairs saying that Department in accordance with terms of treaty is in accord with Government of Nicaragua for application of sum of 250,000 dollars from Canal funds to be applied for purposes so stated.