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

No. 784

Sir: In reply to the Department’s instruction No. 365 of May 7, 1932, file 817.1051/636, I have the honor to report that General Matthews is now preparing a draft of a basic law for the government of the Guardia to be presented to the Nicaraguan Government at an appropriate time. General Matthews plans to have the draft finished [Page 865] in ample time for presentation to the next Congress, and it is hoped that in the meantime the political situation here will be so clarified as to permit the matter to be taken up with the Nicaraguan Government and the draft revised in consultation with the representatives of the Nicaraguan Government before it is presented to Congress. Colonel Walter Sheard, Chief of Staff of the Guardia Nacional, is on his way to Washington on leave of absence and will consult with the Navy Department on the subject while he is there.

Respectfully yours,

Matthew E. Hanna