The Minister in Nicaragua (Eberhardt) to the Secretary of State
[Received 5:16 p.m.]
108. The following on the military situation:
Brigade commander reports that the dispersal of the Salgado and Sanchez groups has been confirmed and that other chiefs including Maldonado, Gomez, Gonzalez, and Escalante are abandoning operations. Three other colonels have been granted amnesty by Honduras. Ortez is in Honduras and Sandino is believed to be there. Altamirano and a few very small groups are being hard pressed. In general the military situation is excellent.
Brigade commander expressed hope at weekly conference yesterday that a gradual reduction of from five hundred to one thousand marines might be possible by July. He said that the exact number would of course depend on the bandit situation and the development of the guardia.
Mobile battalion of two hundred guardia is on its way to Jinotega. It will operate in the Pena Blanca area in groups of fifty.
McDougal12 is taking measures to stimulate recruiting in the Guardia.
Dunlap13 and McDougal have been ordered to Corinto to confer with Admiral Sellers who arrived there last night. General Williams14 is reported due at Corinto today. Admiral Sellers does not intend to visit Managua.