File No. 817.51/1052
[Untitled]
Washington, November 22, 1917.
Your Excellency: The terms of the protocol concluded September 18, 1909, between the Government of the United States and the Republic of Nicaragua, provide that the latter pay to the Government of the United States the sum of $600,000, of which, in due course, only $50,000 was paid.
The balance of $550,000 with interest, as per said protocol amounts to $748,986.12. An agreement has been reached on October 20, 1917, with the representatives of the parties interested in this amount, to the effect that they would be willing to receive the sum of $485,000 as part of the principal, and receiving Treasury notes provided for in the above mentioned agreement for the balance of $273,986.12 being the remainder of the principal still owing, and the full amount of interest due.
My Government has instructed me to inform your excellency that it has determined to apply the sum of $485,000 from the sum of $3,000,000 to be paid to the Government of Nicaragua in accordance with Article Three of the Treaty of August, 1914, between the United States and Nicaragua, for account of its indebtedness to the Government of the United States under protocol above mentioned, of September 18, 1909.
Hoping that this will meet the approval of your excellency, and with assurances [etc.]