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

289. Legation’s 288, December 20, 10 p.m. I have just seen President Moncada who requests that the following clause be added to his counter proposal: “In case of a disagreement arising between the Republic and the bankers, it is hereby understood that both parties to this agreement will abide by the decision in the matter under discussion of the Secretary of State of the United States or a representative duly appointed by him.”

President Moncada stated that his counter proposal was in the way of a suggestion and that he would not insist on points unacceptable to the bankers or to the Department. Without my suggesting it in any way he requested me to ask you to request the present bankers in his name to stay on temporarily until new arrangements for the bank have been made.