817.51/1869
The Secretary of State to Doctor W. W. Cumberland
Sir: The Department has been much gratified at your acceptance of its proposal that you undertake to make a financial and economic survey of Nicaragua between the time that your resignation as Financial Adviser-General Receiver in Haiti becomes effective and the time when you enter upon your new occupation. It is understood that you will sail from Haiti about December 4 en route to Nicaragua; that you will remain in that country for such time as may be necessary to carry out the work which you are undertaking; that you will be reimbursed by the Department of State at the same rate of compensation that you are now receiving in Haiti plus the expenses of the trip; and that you are authorized to employ a secretary at a suitable salary, his salary and expenses for the trip to be paid by the Department of State.
[Page 420]The Department of State and the Nicaraguan Government desire you to make a thorough investigation of the resources and requirements of Nicaragua in order to have the benefit of your recommendations regarding the advisability of a loan for some or all of the following purposes:
- For the expenses of holding presidential elections next year;
- For the establishment of an efficient National Guard to preserve order in the Republic;
- For the survey of a railway between the capital and the Atlantic coast, provided in your opinion such a railway is necessary and desirable;
- For the payment of claims against the Nicaraguan Government arising out of the recent revolution;
- For public works other than the aforementioned proposed railway; and
- For the refunding of bonds now outstanding, or for other purposes.
It is desired that you ascertain as nearly as practicable how much money would be needed by the Nicaraguan Government for each of the above purposes; and the extent to which, if at all, funds for each of those purposes could be provided out of current revenues likely to be received by the Nicaraguan Government. In case you conclude that the Nicaraguan Government should contract a loan, you should recommend the size of the loan that could and should be made. You should also recommend whether any increase in the national revenues of Nicaragua would be desirable in connection with such a loan, and if so, how much increase might be effected with the least disarrangement to economic activity. Your views are also desired as to the security which should be assigned to a loan, if you conclude that a loan will be advisable, and as to the manner in which expenditure of the proceeds of a loan, if made, might best be handled to ensure their effective application to the purposes agreed upon.
Furthermore, your recommendation will be welcomed in regard to other related aspects of the financial problems of Nicaragua, including fiscal administration, accounting and internal revenues.
It is understood by the Department of State and by the Nicaraguan Government that any comprehensive financial program which might be adopted under present conditions would of course have to be approved by both political parties in Nicaragua, and the Nicaraguan Government has already suggested that the proceeds of any loan contracted in the near future should be spent under bi-partisan control.
You will understand that the need of the Nicaraguan Government for additional revenues is represented to the Department as being somewhat urgent and it is therefore desired that you make the survey indicated above and submit your report and recommendations to the Department of State at as early a date as is possible, consistent with a [Page 421] thorough and careful fulfillment of this task. You may count upon the assistance of the American representative in Managua, the American member of the High Commission, and the Collector General of Customs in Nicaragua for such aid and assistance as you may require and for such information and statistics as you may desire in the course of your labors.
There is enclosed a copy of the report of the High Commission for the year 1926.31
I am [etc.]
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