File No. 817.51/1016

Minister Jefferson to the Secretary of State

[Telegram]

The Department’s October 16, 2 p.m. No arrangements have been made for application of customs money collected by Ham on account of Ethelburga loan, as Nicaraguan Government is awaiting terms of contracts with bankers and foreign bondholders.

Regarding awards the Public Credit Commission is waiting to hear amount of money allowed for internal debt purposes. On basis 1,000,000 dollars available the Commission believes that not more than 15% can be paid in cash. Efforts will be made to pay all claims less than one thousand dollars in cash.

The Commission does not expect to revise or reduce Mixed Claims Commission judgments in the hands of original claimants except by mutual agreement. Claims in the hands of speculators or third parties will be heavily scaled from fifty to seventy per cent.

Jefferson