File No. 817.51/896
Minister Jefferson to the Secretary of State
Managua, September 1, 1917, 3 p.m.
Nicaraguan Congress in extraordinary session after over a month of discussion of financial plan approved it with some modifications and enacted it into law. The Executive is authorized with power to execute formal contracts with the interested parties in conformity with the bases of the plan which are sufficiently broad so that no question can arise after the formal contracts are signed on behalf of the Nicaraguan Government by its agent Ramón Enríquez. Therefore it will only be necessary if the bankers so desire to later have the contracts ratified by the Congress.
In the paragraph after word “power” in lieu of “etc., etc.” insert “According to the catalogue of fiscal accounts.” Not listed in catalogue are property, local school and forestry taxes. National Bank now collects property tax as guaranty of 500,000 dollars loan of which 236,000 dollars have been paid to June 30. School and forestry taxes will be used for school and agricultural purposes and collected and expended local school boards.
[Page 1137]Also in the first paragraph is following change in phraseology: “If during a period of three consecutive months the revenues are less than 180,000 dollars it is understood to mean that the three months referred to will begin from the first month which falls short of the 60,000 dollars except in case of unforeseen circumstances and force majeure.”
In second paragraph insert after “legal fees, etc.” “Approved by the Government”.
In Subsection C insert after “legal fees,” etc. “Properly vouchered”.
With reference to most important addition to plan see my August 18, 11 a.m., second and third paragraphs. Other slight additions to text do not change intent of law.
Copy of the law will be forwarded by first mail.
I wish to report the amount of customs receipts retained will approximate about 1,000,000 dollars by September 16.