817.00/2823: Telegram

The Chargé in Nicaragua ( Goold ) to the Secretary of State

48. Disturbances continue on the Honduranean boundary. I am informed that the project is on foot to conduct a series of small invasions into Nicaragua from Honduras with the object of harassing and financially weakening the Government of this country and of staging a general uprising when the Government is sufficiently weak to make a success of the revolution probable. Nicaraguan emigrados who have posts in the Government of Honduras and Nicaraguan and Honduranean liberal leaders in general are said to be back of the movement, and the most powerful individual in Honduras working for the overthrow of this government is said to be Carlos Lagos, Minister of War, whom President López Gutiérrez is not strong enough to control.

General Solis, a Honduranean emigrado, spoke to me in the above sense and the Minister for Foreign Affairs Dr. Zepeda tells me that he believes that the theory is a very probable one. The Under Secretary of Foreign Affairs is convinced of its correctness.

The Government has decided to maintain a permanent force of 1500 men in the area threatened and it is seeking a new loan of $150,000 to cover the probable expenses of the maintenance of this force.

This morning the Foreign Minister told me that he thought it would be beneficial if the Department could see its way clear to declare that it would look unfavorably upon any revolutionary movement engineered against this country with Honduras or any other Central American country.

Goold