417.00/324: Telegram

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

131. Department’s 63, May 2, 6 p.m. President Moncada told me this morning that he plans to constitute a Claims Commission by presidential decree very soon after the present extraordinary session of the Nicaraguan Congress adjourns at the end of this week. The American member of the Commission will have absolute veto power. The Commission will receive and settle all claims arising since October 25, 1925, as the result of the civil strife. The work of the Commission will be revised and the amount of all claims definitely fixed by another similar commission to be created with the approval of the Nicaraguan Congress at its next regular session. Provision for the payment of the claims will also be submitted to the Congress at that regular session.

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The President does not deem it prudent to submit the matter to Congress before the regular session but thinks he can carry through the plan outlined above and is eager to create a Commission without delay. He will submit the decree for the Department’s consideration before making it public.