815.00 Revolutions/43: Telegram

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

80. Military situation has undergone an important change in the last 24 hours. The deadlock at San Pedro Sula has been broken by Ferrera’s withdrawal from the immediate vicinity of that town and his general retirement toward the town of Santa Barbara. One thousand Government troops are following.

On the remainder of the north coast there have been no disturbances and conditions are rapidly returning to normal.

I have requested the Commander of the Special Squadron who arrived at Castilla this morning with the Rochester, to come immediately by plane to Tegucigalpa to consult with me. I believe that two warships are now sufficient on the north coast and intend informing the Commander, Special Service Squadron that he may in his discretion withdraw two of the four there.

There has been much complaint of the false and alarmist news reports being sent to American papers by correspondents in Honduras. The President has in consequence imposed a strict censorship on outgoing news. The Legation has been purposely using the word insurrection instead of revolution not only because the present disturbance is not a revolution in motives or magnitude but also to convey the fact with emphasis.