The Minister in Nicaragua (Eberhardt) to the Secretary of State
[Received July 1—1:50 p.m.]
163. Department’s 103, June 28, 8 p.m. Plans for Claims Commission as outlined are being followed. Their preliminary work has been to formulate and prepare rules of procedure, etc. Tomorrow they commence to receive and tabulate, upon completion of which (about December first) especial proceedings will be undertaken either by this Commission made permanent or by its successor, latter to be created by the law of last December as has been the present one, the law in either case to be amended to accord the American member of the Commission the veto power in the appointment of the Liberal member. Moncada was not consulted directly since he was absent from Managua, as he has been most of the time and is today; instead, I saw the Liberal Directorate through Dr. Aguado to confer with Conservative Directorate to make recommendations on this and other subjects. They seemed divided amongst themselves and did nothing. Meantime Diaz was besieged daily by scores of persons who had claims. It was [Page 466]physically impossible for him to see them and a Commission was urgently necessary. Somoso, former secretary of Moncada and now acting jefe politico at Leon, finally joined some 50 other prominent Liberals of that vicinity in recommending Arguello Cervantes for the position and I suggested that Diaz appoint him. There are a number of Liberals whom either Diaz or I would have chosen instead of Cervantes but Diaz was ready to name any man of their choice. This affair seems thus to be a development of the apparent split between the Leon and other Liberals. It is earnestly hoped that no change will be considered now. At the close of the preliminary work, about December, will be ample time. If a change seems desirable, I am sure that I can arrange this matter satisfactorily with Moncada if and when he next comes to Managua.