417.00/323: Telegram

The Secretary of State to the Minister in Nicaragua (Eberhardt)

63. Your 119, April 23, 5 p.m. and 128, May 1, 10 a.m. In the Department’s opinion the most practical and generally satisfactory procedure would be to constitute immediately a Commission authorized to settle as well as to study and classify the claims. It is not thought that the preparation of the necessary legislation should take very long. You may informally inquire whether it would not be possible for the present Congress to take a short recess or to be convened later in another special session as soon as the draft of the legislation is ready. The Department is inclined to the belief that it would be better to deal with this whole question now without awaiting a revision of the Financial Plan.

With regard to the extension of the jurisdiction of the Claims Commission over general obligations of the Nicaraguan Government, the Department feels that this is a matter for that Government to decide. The Department particularly desires that the Legation take no action with respect to the Hibernia Bank claim.