417.00/276: Telegram

The Acting Secretary of State to the Chargé in Nicaragua (Munro)

[Paraphrase]

168. Legation’s telegram number 291, October 25, 9 a.m. Moncada, with whom the matter was discussed, definitely objects to Arguello Cervantes.

With regard to the veto power of American member, Moncada firmly maintains that this should be carried out. He much preferred [Page 467]to have three American members on Claims Commission and that the Conservative and Liberal Parties be represented merely by attorneys. It was pointed out to him that such a procedure would be a considerable departure from the method adopted in the past in similar cases. He replied that he would not insist on that but must insist on American member having the decision, as the political members of the Commission would be swayed by political and family interests and would support claims higher than was justified. … The Liberal Party, he said, desires the Claims Commission to perform its duties in the most proper manner, that only legitimate claims be allowed, and those only in proper amounts. In view of this, Moncada would rather have a Claims Commission composed of three American members, but if such an arrangement is impossible he would accept a Conservative member and a Liberal member, provided the American chairman would have the deciding vote.

The Department concurs in your opinion that the matter of the veto power should not be pressed if it can be avoided. It wishes your views in the light of Moncada’s position.

Moncada was informed that the matter of the veto power would be held in abeyance pending further consideration, but that you would be authorized to suggest to Diaz that a Liberal member named by the Liberal Party be substituted for Arguello Cervantes.

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