817.51/1958: Telegram
The Secretary of State to the Minister in Nicaragua (Eberhardt)
140. Your telegram No. 269, July 3, 4 p.m., paragraph 5. The bankers have signified their willingness to include in section 2, article 7, a provision requiring the countersignature of checks by the Collector General, provided that this official be nominated by the Secretary of State. In the last draft we went back to the old method of the Collector General being nominated by the bankers, approved by the Secretary of State, and appointed by the President. The bankers state that they would not consider including this provision with the Collector General appointed by them, for the bankers point out that the Collector General would doubtless often have checks presented to him in a rush for countersignature and that he might thus inadvertently sign a check which would be used for purposes other than that appropriated for and that as a result the bankers’ appointee would be a direct party to the transaction, which would react unfavorably on them. The bankers feel that, with the supervision of the Auditor General and the publicity which would be given to any improper act on the part of the Finance Minister, there is sufficient protection, and that once such a case had been brought to light and published, the humiliation of its publication would deter any future incumbent from taking the same action. The Department would like to have your views by telegraph.