817.51/1917: Telegram
The Minister in Nicaragua (Eberhardt) to the Secretary of State
[Received 10:59 p.m.]
201. This morning we discussed the contents of the Department’s 97, April 19, 4 p.m., and 105, April 28, 6 p.m., with President Diaz.
We explained to the President that it was our understanding that the Department was prepared to support an effort to work out a loan and a new financial plan along the lines recommended by Dr. Cumberland, but that this would take time, and that meanwhile it would be necessary to adopt some measures to carry out the assurances given through Colonel Stimson to the Liberals in 1927 regarding the control of funds during the period of the election. President Diaz readily consented in principle to the immediate adoption of the principal measures of financial control recommended by Dr. Cumberland, provided that the Liberals also agreed to these measures, and provided that it were clearly understood that the establishment of such control was preliminary to the flotation of a loan later on. The President stated that he would like to see the Cumberland report before he committed himself definitely, and we agreed to go into the matter in greater detail when the Cumberland report was received here. I assume that we will be authorized to show the Cumberland report to the President and to the Liberals when it is received.
In the meantime we will work out and submit to the Department some concrete recommendations along the lines set forth in the Department’s 105, April 28, 6 p.m.
It is still our feeling that the solution of this entire problem would be greatly facilitated by the immediate sale of a controlling interest in the National Bank, because the freedom of the bank from political control is of the greatest importance. There is no other way permanently to assure its safety and the safety of the currency system.
Colonel Parker72 concurs in the above.
- Col. Francis Le J. Parker, alternate to General McCoy as chairman of the National Board of Elections.↩