The Minister in Nicaragua (Eberhardt) to the Secretary of State
[Received 9:30 p.m.]
13. Gradual progress is being made with the plan for bringing the two factions together in preliminary conferences. See last paragraph my December 31, 3 p.m.25 On January 6 Admiral Latimer was asked to encourage Sacasa group on Atlantic to consider peace and the day following I induced three Liberals and three Conservatives of Managua to request Sacasa by cable to authorize agents here to enter into preliminary negotiations with Diaz government. Sacasa replied January 10th that since he had; some time ago accepted Costa Rican offer of mediation he could not consider this proposition. He has probably been influenced in this attitude by false rumors of success of Liberal troops on Pacific side and what, until Rama was neutralized, seemed certain victory of his troops there. With the neutralization of Rama I felt that Sacasa might be more inclined to treat with Diaz government and accordingly yesterday I asked latter to make some definite proposals, bearing in mind that Liberals must be given generous treatment. These proposals will at once be communicated to the Department. It is believed that one of the first demands of the Liberals will be that 1928 elections be adequately supervised by the United States, which idea, in the [main], I believe I should be instructed to encourage, always stressing the difference between “supervised” and “guaranteed fair” elections. Repeated to Admiral Latimer.