817.00/3946: Telegram
The Chargé in Nicaragua (Dennis) to the Secretary of State
[Received October 22—1:10 p.m.]
173. Conservative delegation formally declined to accept proposition of Liberals communicated my telegram October 20, 9 a.m. Conservatives objected only to arbitration by Central American Governments, alleging these Governments would not be impartial. To the surprise of all, Liberals this afternoon presented statement that, in view of refusal of Conservatives to accept their first proposition of Sacasa and their second proposition for the submission of the question as to Sacasa to arbitration by the United States and Central American Governments, they felt obliged to withdraw from conference. I immediately suspended session until tomorrow and had conference with Cuadra Pasos27 and Espinosa.28 The former offered Liberals reinstatement of the 15 Congressmen and the expelled magistrates, also two new members in Cabinet, all former posts held under Solorzano government, free elections in return for resignation of Sacasa, and acceptance of designation by Congress of Adolfo Diaz.
The change in attitude of the Liberals is possibly due to the receipt of news by mail steamer which arrived this afternoon from Salvador. Report from Customs Collector Pietro indicates both sides preparing for resumption of hostilities. Report from Puerto Castillo, Honduras, states filibuster vessel manned by Mexicans passed bay headed for Bluefields. Rumors allege that all arms and ammunition were taken off El Tropical before it left Salvador and since landed at some point on Bay of Fonseca and that a general uprising in Leon is to be [Page 799] expected soon. According to reliable information the Mexican consul in Managua is sending and receiving unusual quantity of codes and has close liaison with Liberal delegates.
The Liberals are on record in conference as having received and as counting on further Mexican aid to carry on revolution. Their sudden determination to break up conferences either is a bluff to secure the utmost in terms from Conservative delegation or has been taken on the receipt of definite assurance of further support from Mexico. The Conservatives in conferences have shown an extremely conciliatory attitude and proposed compromises while the Liberals have held out for Sacasa or nothing, offering as a compromise the preposterous proposition of an international arbitration of an interior Nicaraguan political problem. As to this proposition the Conservative delegation suggested [asking] for an official statement which I had already given privately to both sides in the negative, but Liberals declined this suggestion.
If, as it would appear, should Liberals not modify their attitude tomorrow morning, they are not desirous of peace except on basis of their triumph and if they propose to carry on their fight for constitutionality as they have threatened with Mexican aid, I feel the United States Government must be prepared to take prompt and adequate measures to prevent foreign intervening in Nicaraguan affairs. I have full assurance from Conservatives and Chamorro that in the event of failure of conference he will immediately withdraw and allow a provisional government to be formed which will at once proceed constitutionally to recognize the government. The United States Government should immediately lend its full moral support to the provisional government during the transition period and extend recognition upon the satisfactory election of the new President. Please instruct immediately.