817.516/231: Telegram

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

292. Department’s 175, December 23, 6 p.m. President Moncada is very anxious to reach an immediate agreement with the bankers which he can present to Congress to offset pressure upon him to nationalize the bank. With this in mind he states he will send to Sacasa the following telegram:

“With reference to the proposed preliminary agreement with the new bankers transmitted by you on (date to be inserted) you are informed that I have transmitted to the Department of State through the American Legation in Managua a counter proposal embodying certain suggested changes. You are hereby authorized to present that counter proposal to the bankers and to sign on behalf of the Government of Nicaragua the proposed preliminary agreement embodying such of the changes suggested by me as are acceptable to the bankers and meet the approval of the Department of State.”

With reference to the next to last paragraph of the Department’s telegram 173 of December 18, 6 p.m., President Moncada says he will ask Sacasa to suggest that the agreement to be signed contain a clause providing that the agreement will not be effective until the communication to the bankers has been made and accepted by them.

President Moncada states that both Soley and Carazo Morales have presented their resignations and he fears that Sacasa is not strongly in sympathy with his ideas.