816.01/355: Telegram

The Acting Secretary of State to the Minister in Nicaragua ( Lane )

4. Your 6, January 11, 10 p.m. The Department is deeply gratified by the approval by President Sacasa of the friendly suggestion offered.

The form of the agreement as proposed by President Sacasa appears satisfactorily to provide for the desired objectives.

In view, however, of the fact that the Governments of Guatemala and Honduras, together with the Government of Nicaragua, are the participants in the proposed agreement, it would seem to the Department better policy for the representative of President Sacasa first to visit the President of Guatemala and the President of Honduras before discussing the question at issue with President Martínez. It is feared that possible friction might develop if Senator Sacasa entered into his proposed conversation with President Ubico after discussion with President Martínez. Please convey this suggestion tonight to President Sacasa informally and explain to him fully the reasons behind it.

Please express to President Sacasa the Department’s appreciation of his offer to keep you advised of developments and advise him of the interest with which we shall follow the course of the negotiations.

Phillips