817.00/5382: Telegram
The Minister in Nicaragua (Eberhardt) to the Secretary of State
[Received 9:11 p.m.]
72. From McCoy.90 Except as indicated below, conditions throughout Nicaragua are generally peaceful and orderly. This condition is however, due solely to the presence, under impartial American officers, [Page 564] of the Marine Corps and guardia forces which give assurance to those who are peacefully disposed and which hold partisan violence in check. Pending the elimination of certain lawless bands that still infest parts of the disturbed area, clashes are to be expected from time to time between those lawless elements and the troops engaged in protecting life and property. Since bombing on January 14 and occupation of Sandino stronghold at Chipote his forces have disappeared from that locality. On February 4 our aeroplanes under Major Rowell definitely located the presence in San Rafael del Norte in northwest part of the Department of Jinotega of an organized force of about 150 armed men. Marines who entered San Rafael on February 5 transmitted unconfirmed reports from native sources to the effect that Sandino had been with the force at San Rafael. A despatch from Summerlin dated February 5 transmitted information received from the President of Honduras to the effect that Sandino with about 200 men had on February 2 crossed into Honrduras from Jalapa heading northward toward wild region about Catacamas. Report indicated this last force as dwindling. Other Honduranean and Salvadorean elements from Sandino’s forces have also been reported as crossing the Honduranean frontier at various places. A despatch from (Cruse)91 dated February 7 states that reliable information is to effect that Sandino was at Dipilto on February 2nd and that increasing evidence tends to confirm his later crossing into Honduras east of Jalapa.
Reliably informed American who left Matagalpa at daylight February 6th states that reports to which the American attaches full credence had reached Matagalpa on the evening of February 6th to the effect that bandit forces under Sandino had that day occupied two German properties about 10 miles east of Jinotega and were advancing on coffee plantation Lafundadora situated about 14 miles north of Matagalpa, owned by Charles Potter, a British subject. On afternoon February 7 Potter telegraphed an American here indicating Potter’s property had been occupied and that occupation by a detachment from Sandino’s forces with total alleged strength of several hundred men is also reported in a despatch dated February 7th received by Legation today from American consular agent at Matagalpa.
Having in view above conflicting reports, probability is believed to favor conclusion that Sandino with force of several hundred men is now in coffee area near Matagalpa owned largely by Americans and other foreigners. Reinforcements are now moving toward threatened area both from here and from northern area and part of these should reinforce regular Matagalpa garrison this evening.