Papers Relating to the Foreign Relations of the United States, With the Address of the President to Congress December 4, 1917

File No. 818.00/172

The Costa Rican Minister to the Secretary of State

[Translation]

Costa Rican Legation,
New York, June 15, 1917.

Excellency: Señor Don J. Rafael Oreamuno, Secretary of the Legation, reports to me that on the 12th of this month he had the honor to have a conference with the Honorable Mr. Stabler, Chief of the Latin American Division of the Department of State and that in the course of that conference the Honorable Mr. Stabler saw fit to show him a declaration written by the most excellent President Wilson in which that High Functionary declares he will recognize no Government in Costa Rica that owes its origin to any means other than those established by the Constitution.

Pursuant to instructions from the legitimate President of Costa Rica, the Licentiate Don Alfredo González, I have the honor to express to your excellency the intense satisfaction he experienced in noting the sentiments of the aforesaid declaration, albeit it contained but a confirmation of the assurances given him in February last by the Most Excellent President Wilson that in no way, on no ground, at no time would he recognize as President of Costa Rica Don Federico Tinoco, or any of his relatives or close friends.

As I had the honor to state in my note of February 28 last to your excellency, Señor González is firmly convinced—and the course of events has more and more strengthened his conviction—that without the American Government’s recognition Tinoco will find it impossible to hold the power he has usurped. The short five months in which he has exercised it are proof evident of this, seeing that in order to meet expenses he has had to negotiate most costly loans with the banks in the country which among other most injurious effects has had that of reducing the value of the national currency to one-half, or less, of what it was when Tinoco broke into the power. As the lending capacity of those banks is already exhausted, it appears from trustworthy reports that have reached me lately that Tinoco, confronted by the banks’ refusal to supply with any more funds, intends to resort to unlimited issue, which would be unavoidably attended with the consequence that the internal situation of the country would become still worse than it is now, since the incalculable depreciation of money would eventually upset the finances of the nation, public and private, and throw them into complete bankruptcy.

The discontent that is felt in Costa Rica could not be greater; hunger is beginning to threaten all classes and the only thing that props the demoralized spirit of the Tinoco Government and moves it to fight and hold on to the last is its firm hope of early recognition by this Government.

Whenever Tinoco gains such recognition, that is to say, whenever the foreign speculators who spurred him to commit the treasonable act that lifted him into power see that they could in full safety close the transactions which Tinoco holds out to them, the insuperable difficulties which now stand against his Government would vanish, for that time at least, two, three or four years, during which he will lay his hand on the proceeds of the whole patrimony of the country which he would deed away for good and forever. And then the situation would revert to to-day’s state of anguish with that difference that there would be no remedy left as the Republic would have sacrificed at ridiculous prices the property it still owns.

And this view of affairs is understood and felt by the country and one need not be a great prophet to predict that before the final ruin here depicted is consummated the Republic will be thrown into bloody convulsions trying to free itself of the man who is now exploiting and ruining it. To avert such a calamity, it is necessary that Tinoco lay down the power and to that end, President González, encouraged by the firm and positive attitude taken by the most excellent President Wilson, directs me to submit to your excellency’s consideration the following ways of action:

1. Prohibit all exportations from the United States of war material for the Government of Costa Rica, and also of bank notes to increase the circulation of that country.

2. Buy out the French and English claims through American capitalists and take possession of the management of the customhouses and of the national liquor manufactory which, under the loan contracts are pledged for the various loans, and may be managed by the creditors in case the debtor Republic fails to meet its liabilities, which is sure to happen in a very short time under the rule of the present Government.

3. Get the creditors of the de facto Government of Costa Rica to collect the balances due them and stop all credits, if it have any.

4. Let the American Government adhere to its present attitude in not recognizing the de facto Government of Costa Rica and also to its decision not to grant diplomatic protection to any concession or privilege conferred by Tinoco upon individuals or corporations, and give publicity to those decisions both in this country and in Costa Rica.

But the mere fact that Tinoco is removed and superseded by an honorable Government constitutionally elected will not avert the dangers nor remedy the coils that are now threatening and hurting the Republic. The World War had so deeply disturbed the economic conditions of the Republic that nothing but the profound knowledge possessed in the matter by President González and the energy and patriotism he displayed could prevent the bankruptcy we are now expecting from taking place during his administration; nay, the saving measures that he succeeded in introducing would have warded off the crisis and put the nation on a strong and safe footing of financial solvency, had it not been for the treachery that removed him from the power at the time when that presence there was the most imperatively necessary.

But difficult as was the situation of Costa Rica at that time, as above explained, now that it has lost the good name won for it by the reliable character of its institutions, it may be said to be in every way irremediable unless prompt and appropriate help is extended.

The help which President González most respectfully asks for the next Government of Costa Rica, consists in the following:

1. The redemption of the foreign debts of Costa Rica and the increase of that redeemed debt in the amount needed to extricate the Government of Costa Rica from its trying financial condition pending the organization of the collectorate under the new revenue laws and the reorganization of the banking system on lines more consistent with the needs of the country and the modern tendencies of science in that branch.

2. The building of new ways of communication at home, and the increase of those with foreign countries, which last might be achieved by letting American steamers running to Panama also call at Costa Rican ports provided they find sufficient freight there.

The foregoing measures would result:

a. In maintaining the value of the monetary unit (Colon) and thereby a stable international exchange. This would induce foreign capital to invest in Costa Rica and further strengthen the stability of Costa Rican currency.

b. In increasing the national agricultural crops, with an assured outlet at all times, for in times of peace, Costa Rica would sell her grain and vegetables to the ships that cross the Panama Canal and in times of war to the American Government for the victualling of its soldiers and sailors in the same Canal Zone. The capacity of the Costa Rican people for agricultural production will be enormous from the day when they are given the means to develop it under favorable conditions.

c. In having the chance to gain all these advantages without adding to the burdens of the country, in interests or principal, inasmuch as the world condition of finance offers the opportunity to redeem, with the help of the capital of this country, the foreign debt of Costa Rica at nearly 50% of its face value, when one takes into account the comparatively low interest it yields, the long terms for which it was contracted, the surtax laid in France and England on income from foreign investments, and the high rates of interest at present paid by the last named countries on their own loans.

d. In saving the democracy of Costa Rica from the claws of a military tyranny and once more set up the salutary precedent that no Government born of treachery or revolution can stand long.

And now I beg leave to say to your excellency that the only legal and constitutional solution which in our opinion fits the present political problem of Costa Rica is to let the Licentiate Don Francisco Aguilar Barquero take charge of the Presidency of the Republic, as third Designado.

Señor González, as I have so often and repeatedly declared to you, has not the slightest desire to resume the power, and both he and his father, Señor Don Domingo González, second Designado for the Presidency, are quite ready to resign their respective offices to let Licentiate Aguilar Barquero take it by operation of the law.

So provides Article 100 of the Constitution which lawfully governs in Costa Rica since 1871, for, that which has just been put in force, under Tinoco’s pressure and by a Constituent Assembly consisting wholly of his out and out friends and relatives, is as illegal and void as the very presence of that same Tinoco in the executive power which he usurped through the treachery of the 27th of January last.

Señor Aguilar Barquero is an honorable man, talented and capable of giving the Costa Ricans all manner of guaranties and a wise and conservative administration. President González takes pleasure, as an act of justice in acknowledging those qualities to Señor Aguilar Barquero, all the more as that gentleman did not belong to the political party supported by Señor González.

For the foregoing reasons the undersigned believes that with Señor Aguilar Barquero in possession of the executive power, with the above-mentioned financial help, and the support of all his fellow citizens, the change in the economic, political and financial conditions of Costa Rica will be so astounding that the Costa Rican people cannot but regard as their salvation the attitude of the American Government toward the present Government of traitors, which attitude will free the Republic from an unprecedented military tyranny and save the country from the utmost physical, moral and political ruin.

With assurances [etc.]

Manuel Castro Quesada