817.51/1972a: Telegram
The Secretary of State to the Minister in Nicaragua (Eberhardt)
154. The bankers are sending the following telegram to Rosenthal:
“As you know for several months we have been spending a great deal of time, effort and some money at the special request of Department of State to try to work out a Financial Plan for Nicaragua. We have had protracted discussions with Cumberland and officials of Department of State at Washington. Throughout our long discussions the Department of State and the bankers both realized the [Page 553] unusual character of the problem. In spite of the fact that Department of State and the bankers understand that the representatives of both political parties in Nicaragua are desirous of working out a Financial Plan Department of State and the bankers have agreed in view of the impending elections in Nicaragua and also because the market for securities in the United States is now somewhat inactive that it seems wisest to postpone the whole matter for the present. We hope that it may be revived after the Nicaraguan elections. We of course regret exceedingly that it seems impossible to bring this matter to a successful conclusion at present especially because we believe that the Plan as now drafted would be of great assistance to Nicaraguan finances and to the general welfare of the country. It is our hope and belief that the months of intensive effort in examining this problem will serve as a substantial ground work for completion of the entire program at a reasonably early date. We would like to have you advise the proper people fully as to the above.”
[Paraphrase.] The Department feels that a financial plan which does not provide definitely for more than $3,500,000, and which ties up all the resources of Nicaragua is not one which it wishes to sponsor in advance. In other words, should the Government want such a financial plan, the Department would, of course, raise no objection, but the Department would not wish to approve such a financial plan in advance and then have the matter presented to the Government of Nicaragua on the basis that the financial plan met with the approval of the Department. The foregoing is for your strictly confidential information only, and is not to be communicated to anyone. [End paraphrase.]