The Acting Secretary of State to the Minister in Nicaragua (Hanna)
Sir: Reference is made to your despatch No. 1253 of April 29, 1933,79 concerning informal discussions with Judge Stanley with respect to the prolongation of the life of the Claims Commission which will, unless extended, complete its work by the end of this year. Reference is also made to your despatch No. 1275 of May 12, 1933,79 concerning the making of some adequate provision for the payment of the awards of the Commission.
The Department concurs in your view that it is desirable that the life of the Commission be continued until all claims matters against the Nicaraguan Government have been settled. The Department believes that there is every reason why such action would be beneficial not only to the claimants but to the Nicaraguan Government as well. Settlement of outstanding matters of this nature would remove possible causes of friction between the Government of Nicaragua and foreign governments and in addition be an expeditious way of eliminating the loss of much time and effort in an endeavor to settle such matters through diplomatic channels.
Economically the continuation of the Commission’s work could not help but be of great benefit to the Nicaraguan Government by determining definitely the obligations of that Government to foreigners, thus permitting it more easily to put its financial house in order. Furthermore, the settlement of claims in this way is a much more economical procedure than a resort to arbitration or the establishment of claims commissions between the interested governments.
For these reasons the Department authorizes you to discuss the subject with the Nicaraguan Government in an effort to obtain the results referred to. However, before the elimination of any category of claims is decided upon the Department should be fully informed concerning such proposed elimination and its authorization therefor obtained. You are also authorized to indicate in such manner as you may deem proper the interest of this Government in the final settlement of the claims by the payment of the awards made by the Commission [Page 566] and to express the hope that adequate provision will be made to this end as provided for in the legislative decree of February 6, 1930.80
Very truly yours,