817.51/1971: Telegram
The Minister in Nicaragua (Eberhardt) to the Secretary of State
[Received 10 p.m.]
298. Department’s 150, July 23, 4 p.m. While it is impossible to predict with any confidence what the attitude of the Nicaraguan Congress would be, we think that the plan as outlined would probably be acceptable and we feel that it would be very advisable to present plan and to do so as soon as possible. If it is not submitted within the next month it is very possible that developments during the political campaign will prevent consideration of it on its merits.
The provision regarding claims seems satisfactory, except that we should suggest that it be made possible to assign the certificates, but only to banks as security for loans.
[Paraphrase.] Regarding the purposes for which the proceeds of the first issue are to be used, we are of the opinion that the items for the wharf, redemption of bank notes, expenses of the special session, and paving should be included, but that the payment to Salvador should be taken out, with the idea, however, that the payment might be restored later as a concession to the Government if the latter insisted. [End paraphrase.]