817.51/1927: Telegram
The Minister in Nicaragua (Eberhardt) to the Secretary of State
[Received 7:20 p.m.]
225. My telegram No. 215, May 16, 7 p.m. I have been informed by Rosenthal that the sale of the stock of the National Bank would probably require the ultimate approval of Congress. He has recommended, therefore, that the purchase price be held in escrow pending the approval of Congress. I concur in this recommendation. I suggest that it be agreed that the purchase price be used to defray the expenses of the Guardia Nacional after January 1, 1929. Such an arrangement would prevent the misuse of the money during the election campaign, and would also assure funds for the Guardia Nacional, which otherwise will be in a precarious condition, for it now seems probable that the surplus becoming available on January 1, 1929 will be a small one. The anticipation of the January surplus for political purposes can be prevented by asking the National Bank to make no advances against it.
I agree with Rosenthal that it would not be advisable to consult Chamorro respecting this matter while the split in the Conservative Party continues, because Chamorro’s action will be guided solely by a desire to embarrass the administration.