817.51/2170: Telegram
The Minister in Nicaragua ( Hanna ) to the Secretary of State
[Received 8:23 p.m.]
97. Department’s 73, July 30, 6 p.m. In my memorandum for President Moncada dated May 5 last, a copy of which was transmitted to the Department with my despatch number 45 of May 23, I referred to the Department’s interest “as set forth in the Department’s instruction number 4 of April 19 which I previously had discussed fully with President Moncada” in (1) clearing up the situation regarding the Guardia agreement, and (2) meeting Nicaragua’s desire to decrease the financial burden of the Guardia, and suggested that [Page 673] these two subjects be taken up in the order mentioned. President Moncada appeared to accept this order of procedure. The Department has been kept informed of the progress or lack of progress made in the matter of the Guardia agreement. I have had no reply to my last representations on this point, a copy of which accompanied my despatch No. 72 of June 26. I have noted a reluctance in the Foreign Office to continue discussion of this subject and President Moncada also appears to have less interest in the matter. This Government’s action in approaching the Department through its Legation in Washington concerning a reduction of salaries may be an effort to secure a decision on this point without settling the matter of the agreement.
I am in hearty sympathy with this Government’s anxiety to reduce the cost of the Guardia and appreciative of its continued support of the Guardia on the present cost basis in spite of the existing financial crisis and am extremely desirous to cooperate in making economies. I am not prepared to recommend that the scale of salary reductions applicable to Nicaraguans should be extended to American officers of the Guardia, in view of the present salaries being fixed by international agreement, but I am decidedly of the opinion, and so stated when in Washington, that serious consideration should be given to modifying the agreement so as to reduce the salaries of those officers. However, I believe we are in a stronger position to bring about an understanding regarding the Guardia agreement if we insist on settling the matter of the agreement before taking up the other point. I deem it of prime importance to clear the record with respect to the agreement even though we should fail to reach an understanding of some of the changes made in the agreement and should ultimately find it desirable to inform this Government that we will be guided by the original terms of the agreement until such time as an understanding may be reached concerning those changes. I think it essential that this Government should not fail to realize its responsibilities arising out of the international character of this agreement.
I have not yet consulted with General McDougal because I am confident that a reduction of the salaries of the American officers of the Guardia would encounter their keen opposition and it therefore appears to me unworthy to incite agitation of this nature before I have the Department’s reply to this telegram. If such a reduction is made it would seem that it must be with the concurrence of the Navy Department and the assurance that it will have that department’s disciplinary support. For similar reasons I have not yet discussed the matter with this Government.
The reductions vary on an ascending scale from 5 percent for salaries of $20 and less to 20 percent on salaries of $100.