817.00/4314: Telegram
The Minister in Nicaragua (Eberhardt) to the Secretary of State
[Received December 27—11:40 a.m.]
254. President Diaz has ordered army to withdraw from Pearl Lagoon via False Bluff to El Bluff, Bluefields, where soldiers will disarm if required. They will proceed to Managua via San Juan River. Withdrawal not due to defeat but desire to avoid further futile conflict in coast region. Diaz wishes Navy to declare neutral zone at Rama which I strongly recommend on account of American interests there and to avoid futile hostilities. This would complete neutralization of important centers on Atlantic coast and contribute towards early peace. The Government is in full control on the west side.