817.51/1901
The Minister in Nicaragua (Eberhardt) to the Secretary of State
[Received March 7.]
Sir: I have the honor to say that one of the problems which calls for the most serious consideration in the execution of the program which the United States has undertaken to carry out in Nicaragua is that connected with the finances of the Nicaraguan Government. The technical and economic aspects of this problem will of course be dealt with fully by Dr. Cumberland in the report which he is preparing, but there are certain primarily political aspects which in my opinion should receive early consideration and which must very materially affect any consideration which may be given to the question as a whole.
The nature of Nicaragua’s financial problem has completely changed during the past few months. A short time ago the first requisite was apparently to obtain new funds to assure the solvency of the Government and to repair the losses suffered during the recent revolution. Interest in the proposed foreign loan centered mainly on the acquisition of money to pay war claims, to make up possible deficiencies in the Government’s revenues and to meet the extraordinary expenses incidental [Page 526] to the organization of the new Guardia Nacional63 and the supervision of the elections.64 The question of establishing sound financial administration and adequate financial control, while of obvious importance, was less urgent. The unexpected increase in the Government’s revenues and the remarkable prosperity of the country since the termination of hostilities has completely changed this situation. It is believed that the majority of those who suffered losses during the war are now in a position where the payment of their claims is not urgently necessary to enable them to recover financially. The Government has money on hand and in sight to pay necessary current expenses and to provide for the Guardia and the election and there is every prospect that there will be a large sum of money available before the end of the year for other purposes.
. . . . . . . . . . . . . .
I have [etc.]
- See Foreign Relations, 1927, vol. iii, pp. 433 ff.↩
- See pp. 418 ff.↩