815.00 Revolutions/12: Telegram

The Minister in Honduras (Lay) to the Secretary of State

65. The situation has changed little in the last 24 hours. No combats have been reported anywhere; the apparently small groups which rebelled in the Castilla and Ceiba Districts have scattered into the mountains of the interior. The largest rebel concentration has remained stationary astride the National Railway south of San Pedro Sula but is tonight reported to be moving northwest on to the Quimistan-San Pedro Sula highway possibly to effect junction with General Ferrera who has been persistently rumored to have aligned himself with the insurrectionists and is reported to have left his hiding place in San Pedro Sula and gone toward Quimistan.

The Government is concentrating large reenforcements of untrained troops in the San Pedro Sula region for the protection of the town and a possible offensive tomorrow.

The Marblehead arrived at Puerto Cortes this morning and its commanding officer made courtesy visits on the Honduran authorities at San Pedro Sula. Admiral Kempff arrived at Castilla on the Trenton this morning and called on the authorities of Truxillo. I requested that the Memphis, which is at Ceiba, make a visit to Tela where there exists high nervous tension. These visits are having a beneficial effect.

The President of Honduras considers the timely arrest by the Guatemalan authorities of Diaz Zelaya, whom he considers one of his Government’s most dangerous enemies, to have been most fortunate and helpful and expressed gratitude to the United States Legation at Guatemala for its good offices in effecting this move.