Pile No. 715.1715/50
The Minister in Nicaragua ( Jefferson) to the Secretary of State
Department’s August 17, 4 p.m. President Chamorro returned to the city late yesterday after an absence of about a week. He stated to me that he had not sent Nicaraguan troops across the Honduran frontier nor had he even sent one soldier to the frontier, and that only twelve of the revenue guard remained in Las Trojas; that Nicaragua has always had jurisdiction over the towns of Las Trojas, Potrerillos, and Comunidad, and would adhere to her claim pending final settlement of the boundary dispute; that upon his return, the political chief of the Department of Ocotal had information that Honduras had sent troops to Esteli and towards the border, and moreover, had offered pardons to criminals who would join her forces in invading Las Trojas. President Chamorro reiterated that he very much desired the good offices of the Department and feels that Honduras is making his position very hard. He has not resorted to any other means of settling the boundary dispute than through diplomatic channels, and has endeavored to be very courteous to Honduras, thereby avoiding any hard feelings which might bring about serious difficulties over a matter that could be settled by putting it in the hands of the United States Government and both interested parties pledging themselves to accept its final decision.
I believe that Chamorro is sincere in his desire to settle this matter, and I believe that if President Bertrand will do his part, there will be no further trouble. A great deal of the trouble arises from the fact that a large proportion of the people of that community are employed in contraband trade of tobacco, etc., and take advantage of the legal status of the case and stir up as much trouble as possible. I am informed by Mr. Lindberg, formerly connected with customs service, that this section of Nicaragua needs strong vigilance against the contrabandist and is a source of annoyance.