816.01/385: Telegram

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

10. Your 20, January 19, 8 p.m., and Lawton’s January 19, 1 a.m. In view of apparent impasse reached by Crisanto Sacasa with Ubico please see President Sacasa and say that, in view of this and of the desirability of avoiding development of a situation which might imperil the realization of President Sacasa’s plan, we suggest it would be advisable for President Sacasa to revert to the procedure originally in mind. This procedure, which involves an understanding between the Presidents of Nicaragua, Guatemala and Honduras that pending a revision of the 1923 Treaty they will regard it as being in force among each other but not in force with respect to the relations of those three states with Costa Rica and El Salvador, is apparently acceptable to Ubico. For instance, it is noted from Lawton’s January 19, 1 a.m., that Ubico has “no objection” to the foreign ministers of the three states pointing out that the treaty continues in force for their states at the time recognition of El Salvador is announced. Ubico is willing to agree to recognize Martínez and after recognition to join in inviting the five states to a Conference.

This procedure would safeguard the essential points of President Sacasa’s proposal, namely, maintenance of the treaty as between the three states and the calling of a conference of the five countries.

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Of course the invitation to the Conference could appropriately be issued by the three states (including Honduras) who would reach agreement as to the meeting place.

Apparently Ubico’s main difficulty is his unwillingness to join in an agreement signed by Martínez prior to extending recognition to the Martínez regime. It seems to us unwise to press him further on this point.

Phillips