817.516/248

The Vice President of the International Manhattan Company ( Knowlton ) to the Under Secretary of State ( Cotton )

My Dear Mr. Cotton: In February I had the pleasure of discussing with you and Secretary White the conversations which our affiliated institution, the International Acceptance Bank, Inc., was holding with representatives of the Nicaraguan Government. We feel that you may be interested to know that as a result of these conversations, the International Acceptance Bank, Inc. has been appointed the American Depositary and Fiscal Agent of the National Bank of Nicaragua and the Ferrocarril del Pacifico de Nicaragua. Two of the Vice Presidents of our bank, Mr. William H. Schubart and Mr. Howard J. Rogers, have been elected and have consented to serve as directors of the National Bank. Mr. Schubart has been elected and is serving as a director of the railroad company.

In addition to the above mentioned, the board of the National Bank now consists of the Nicaraguan Minister, Dr. Juan B. Sacasa, [Page 695] the Counsel of the Nicaraguan Legation, Dr. Evaristo Carazo, Dr. Vicente Vita and Dr. Virgilio Lacayo, all Nicaraguans resident in this country, and Dr. C. E. McGuire of Washington, and Mr. H. Christian Sonne of the importing house of Amsinck, Sonne & Co., Inc. of this city. The board of the railroad consists of the above gentlemen (with the exception of Mr. Sonne), and Mr. Henry H. Hanson, Vice President of the International Railways of Central America.

The relations between the International Acceptance Bank, Inc. and the National Bank and railroad have not been made the subject of any contract or formal agreement, and it is understood that our bank, in addition to rendering the usual banking services extended to a depositor, is acting only in an advisory capacity and that the relationship is one which may be terminated at any time by either side.

It is our hope, of course, that in this capacity our bank and its officers who are serving on the boards of the two Nicaraguan institutions may be of real assistance and service to the Government of Nicaragua.

On behalf of my associates and myself, I wish to express to you our appreciation of your and Secretary White’s kindness to me when in Washington and to assure you that the conversations which I had with you were of the greatest help to us all.

Respectfully yours,

Hugh Knowlton