817.00/3741: Telegram

The Consul at Bluefields (McConnico) to the Secretary of State

United States ship Galveston arrived 26th and landed naval force. Bluefields declared neutral zone because jefe político in a decree issued 25th informed noncombatants that in view of critical condition they would be compelled in the event of a battle to defend their own lives and property.

Bluff threatened with bombardment tomorrow morning. Puerto Cabezas captured by Liberals after bombardment 28th. Several combatants injured according to a report. Manager of the company requests intervention of the Navy. Pearl Lagoon also in the hands of Liberals.

If Bluff is captured and Crampton, Collector of Customs, is replaced, what action must be taken? Crampton insists upon transferring funds to Chamorro regime. Liberals insist upon retention of revenues for the use of themselves, not for enemies.

Conditions at Bluefields with naval force in charge are quite satisfactory.