File No. 817.51/992
Minister Jefferson to the Secretary of State
Managua, August 18, 1917, 11 a.m.
The Department’s August 16, 6 p.m.6 Financial plan should pass not later than next Wednesday. I have been insisting upon it being passed without modification. However amendments have been offered by Chamorro and Congress most important of which are as follows:
In case that no agreement is reached between the bankers and Nicaraguan Government in conformity with Paragraph F of plan concerning Emery claim then it will be submitted to the Credit Commission for judgment, final decision and award.
In case the internal revenues, etc., should be placed in the hands of the Collector General of Customs this employee of the Government will be compelled to give an additional bond of 20,000 dollars, which shall be satisfactory to the Government making the Collector General responsible for all his acts and subjecting him to the rights and obligations of the fiscal laws of the Republic.
In brief this means that he will have to submit his accounts to the Tribunal of Accounts.
Chamorro is contemplating inserting provision for local school tax to pay expenses of common and agricultural schools. The school boards will collect and pay out these funds.
If above amendments pass I would suggest that Department proceed to have bankers execute a formal contract with the representatives of the Nicaraguan Government and insist upon general principles outlined in Department’s plan being complied with. After it is signed it should be immediately cabled here for ratification by the Congress.
- Not printed.↩