417.00/326: Telegram

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

146. I have brought your 80, May 25, 3 p.m. formally to the attention of the Nicaraguan Government.

It appears from a conversation I had with President Moncada a few days ago that there has been a misunderstanding in this matter. He said it is and has been his intention to create the Claims Commission under authority of the law of December 3, 1926, as amended in March 1928 and not under authority of an Executive decree. He added that if the Commission cannot be created in that manner its creation will have to be postponed until the Nicaraguan Congress convenes in ordinary session. He had thought the Department might name an American member other than the resident American member of the High Commission in spite of article 2 of the law.

I have consulted with Lindberg and he says he can make arrangements to give the Commission at least half of his time now and more later on. He would bring Downing, the Deputy Collector on the Atlantic Coast, to Managua until Crampton, his Deputy Collector, returns from leave in September. If President Moncada’s reply to your 80 is what I anticipate this will probably be the best if not the only way to create the Commission.