817.51/1973: Telegram
The Secretary of State to the Minister in Nicaragua (Eberhardt)
158. Your telegram No. 300, August 1, 2 p.m. The bankers are unwilling to proceed with further negotiations because of the impending election and the inactive market for securities in the United States. The Department, therefore, doubts whether anything can be done at the present time. Certainly nothing could be done unless the Department approved in advance and agreed to recommend to the Government of Nicaragua and to all parties a plan of financing which pledges all the revenues, internal and customs duties, the railroad stock and the National Bank stock for a loan in the first instance of only $3,500,000. Any additional advances would depend entirely upon the willingness of the bankers to make them. This would not assure money to build a railroad or to pay claims. Nevertheless, if the Government of Nicaragua desires to have a copy of the existing project in order that the leaders may study it and familiarize themselves with it, the Department certainly would raise no objection if the bankers desired to make a copy available. The Government of Nicaragua doubtless could arrange this through Cesar, the Nicaraguan Minister in Washington, or Rosenthal. If, after studying this plan, the Government of Nicaragua should decide that the plan was satisfactory and wished to submit it to Congress, and if the bankers were prepared to conclude the plan on this basis, the Department would hesitate to object, but would like to have time to consider it after it learns the views of the Government of Nicaragua.