817.1051/466

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

No. 268

Sir: I have the honor to report that I duly presented to President Moncada the letter of the Secretary of State concerning a redaction in the strength and cost of the Guardia Nacional which was transmitted with the Department’s instruction No. 89, November 24, 1930,

I have received no reply from President Moncada and he has not mentioned the subject to me on the numerous occasions when I have seen him since the presentation of the Secretary’s letter. Nevertheless, I understand from other sources that President Moncada was greatly pleased with the Secretary’s effort as set forth in his letter to be of assistance to President Moncada in this matter.

I am transmitting herewith a copy and translation of a communication which President Moncada addressed to General McDougal on [Page 692] December 10, 1930,36 from which it seems clear that the President has accepted the Secretary’s suggestions that the strength of the Guardia be reduced to 160 officers and 1650 men at an annual cost of $799,652.00, that additional annual allotments be made amounting to $15,000 for the Military Academy and $40,000 for maintenance of prisons, and that the salaries of American officers who enter the Guardia in the future be reduced as set forth in the Secretary’s letter.

The President suggests in his letter to General McDougal that the lower scale of salaries should be applied to officers who enter the Guardia after December 1, 1930, and General McDougal has told him that he is in accord with the suggestion. It will be noted that the President requests General McDougal to submit plans for reducing the cost of the Guardia and the enlisted strength and cautions General McDougal that this reduction should be made as conditions permit bearing in mind the necessity of selecting the men who are to be discharged. It also appears that the President considers appointing the more efficient of the enlisted men thus discharged to the positions of Jueces de Mesta or Jueces de Cantones. General McDougal is now preparing a statement of his plans for submission to President Moncada.

I will not fail to keep the Department advised of further developments in this matter.

Respectfully yours,

Matthew E. Hanna
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