817.516/226: Telegram

The Secretary of State to the Chargé in Nicaragua (Beaulac)

174. Legation’s 287, December 20, 10 a.m. As was indicated in the Department’s 171, December 9, 2 p.m., it has been the Department’s opinion that it could with more propriety request the present bankers to continue in the management of the National Bank of Nicaragua for a short while longer when the negotiations with the new bankers had assumed a more tangible form.

With the Department’s 173, December 18, 6 p.m., there was forwarded to you a copy of the preliminary agreement for the management of the bank which has been proposed by the new bankers. If this proposal has met with President Moncada’s approval and arrangements with the new bankers based on it seem likely to be concluded in the near future, the Department would feel justified in requesting the present bankers to continue their management of the bank for the brief period remaining until it is taken over by the new group.

Please report President Moncada’s views on this matter immediately by cable.