File No. 417.00/245

The Secretary of State to the Minister in Nicaragua ( Jefferson )

[Telegram]

Your telegram March 11, 4 p.m. Please telegraph:

1.
Whether each claim you report as rejected was considered by commission on its merits in accordance with principles laid down in enclosure to Mr. Lindberg’s report to Department dated February 4, 1918.
2.
If so, telegraph fully explanation of grounds assigned for rejecting each claim.
3.
If not, telegraph fully reasons for rejecting each claim without such consideration.

Include in telegram concise statement of total amount cash and bonds allotted on all claims and total amount cash and bonds available for payment of awards.

Supplement telegraphic report by mailing copies of opinions or declarations made by commission with respect to each rejected claim.

Department intends examining rejected claims with view to considering whether action of commission justified. If it finds rejection unjust, Department will urgently request reconsideration by commission if commission remains legally in existence. If commission is no longer in existence, Department will determine what, if anything, would be fair compensation in cases of rejected claims and will insist that compensation, according to Department’s conclusions, be included in prorating funds and bonds available for payment of claims.

Reason for Department’s action in requesting above information is that attorney for Weinberger interests has filed letter with Department asking if Department will take up claims rejected by commission through diplomatic channels.

Department wishes to avoid any unnecessary embarrassment both for Government of United States and for Government of Nicaragua and therefore wishes to proceed along lines set forth.

You may inform General Chamorro that delay has been caused on account of wishes of United States Government that there be no unnecessary and possibly embarrassing matters left for decision at a later time, and that whole matter of claims may be closed up finally once for all.

You may also inform him that the Nicaraguan Chargé d’Affaires has been continually pressing this Government for early payment.

Department cannot consent to immediate distribution cash unless sufficient surplus remains to settle rejected claims if Department finally concludes that they should be paid in whole or in part.

Lansing