817.00/4275: Telegram
The Minister in Nicaragua (Eberhardt) to the Secretary of State
[Received 9:43 p.m.]
246. Your 140, December 18, 6 p.m. See Legation’s telegram 201, of November 15th, its despatch 301 of November 24th, and Latimer’s telegram November 22, 9 p.m.41 These same peace terms have been made within last 10 days by Diaz through his representative in Salvador and again refused by representatives of Sacasa. Liberals repeatedly and openly state that they will not accept any peace terms so long as there is no prospect of active American intervention and they can continue to count on Mexican aid.
The “general uprising” mentioned in my 237 of December 13th41a referred to such an uprising on both coasts backed by Mexico. Diaz could formally [formerly?] and apparently still count on the support of the majority of Nicaraguans but such support cannot avail against Liberals aided as they seem to be by Mexico. In these conditions it is my opinion that neither Costa Rica nor mediation would serve any useful purpose. On the other hand were Mexico eliminated it is my further opinion that the Liberals would immediately be brought to treat with Diaz.
Chamorro’s departure will facilitate solution only in giving Diaz a free hand to offer satisfactory peace terms. Chamorro is expected to sail tomorrow for Panama.
Diaz states that he now has some 7,000 men under arms distributed as follows: Jose Solorzano Diaz, nephew of President, general in chief of army, has some 1,500 men in vicinity of Managua, biggest group being 500 under General Viquez who took Rama in May.
General Arguello commands 2,000 troops on the Atlantic, 1,000 with him at Rama and 1,000 with Deldadillo at Perlas. They beat off Moncada in August at Bluff.
Hurtado has 200 men at Rivas. He beat Liberals at Casaguiana in August.
Saenz has 1,000 men at Leon. Vargas leads 800 men at Chinandega. Gomez leads 1,000 men at Quezalguaque. These generals are all seasoned fighters; believed to be loyal to Diaz and any of them better than the best leaders among the Liberals with the possible exception of Moncada. There are reported to be 200 armed Liberals in and about Leon and some thousand unarmed Liberals to have left for the coast of Casaguiana where they await arms to be brought by Mexican vessel when they will immediately launch the general uprising of Liberals referred to above.
[Page 814]In order maintain itself against Mexican-aided revolution the Nicaraguan Government must spend more than its revenues allow. The maintenance of the troops now under arms costs $10,000 per diem. Only [$?] 20,000 remain of the recent $300,000 loan and there is no prospect of securing further advances as bankers will not lend money to wage a futile war against a Mexican-aided opponent. When the Government reaches the end of its financial resources its soldiers cannot be expected to continue fighting and its overthrow by Liberal uprising should be comparatively easy. As the country is fairly evenly divided between Conservative and Liberals either party when out of power can raise sufficient men to overthrow a tottering government provided arms and ammunition are supplied in sufficient quantities by an outside government.