815.51/426: Telegram

The Chargé in Honduras (Spencer) to the Secretary of State

98. The Minister of Finance notified Young Saturday2 that it had been determined to discontinue his work April 30th. This is surprising as the President has lately manifested increased zeal for reforms. On Thursday he agreed to appoint good personnel to the Commission of Public Credit, accepted the project of Young for its plan operations, and asked him to supervise its labors. Also, at suggestion of the President, Young has made plans for surprise visit to north coast to inspect customhouses.

The President explained to Young that the Minister of Finance had urged discontinuance of the work because of economy but said that question was still open and arranged further conference with Young Tuesday after return from the country.

Real motive seems to be desire of Minister of Finance and others to prevent carrying out of reforms that threaten to abolish abuses in which they are personally interested. Last month the President undertook to get rid of Minister of Finance, who is extremely unpopular, by giving him 3 months vacation but he has declined to make use of it being backed by Minister of War and others and is still in charge. The President is embarrassed by difficult political conditions and the Government is divided into factions. He is influenced by one group and then by another.

I shall endeavor, if deemed desirable, to prevent discontinuance of financial reform[s] in view of great importance of their continuance until it is possible to pay debt and other obligations. Probability of satisfactory outcome would be increased if the Department should deem it proper to authorize special representations. Please cable instructions.

  1. Apr. 16.