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

No. 293

Sir: Referring to my despatch No. 282 of June 19, 1934, and No. 287 of June 23, 1934,90 covering the status of the proposed bond law to meet awards of the Nicaraguan Claims Commission, and particularly to pages 3 to 5 of the former, in which I summarized a conversation with Judge J. S. Stanley, President of the Commission, I have the honor to transmit herewith, copies of a letter dated June 23 addressed to me by Judge Stanley.91 Copies of my reply dated today are also enclosed.91

It will be noted that Judge Stanley renews his advocacy of a cash settlement of the awards of the Commission or, failing that, the issuance of sound bonds drawing interest from the date of issue. He states his opinion that the “lack of suggestions or recommendations”, with one exception, by representatives of foreign powers as to the method by which awards to their nationals should be settled has encouraged the Nicaraguan Government in its desire for a bond issue on which service would be deferred. He suggests that representations along these lines would be of assistance in securing the sort of settlement he envisages.

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I am in agreement with Judge Stanley that adequate legal provisions for meeting the awards are much to be desired and that there is a strong possibility that, unless pressure is brought to bear, the Nicaraguan Congress will either provide for a bond issue under such conditions as to make its market value negligible or take no action for payment of awards. I do not, however, feel that the desirability of securing fair treatment for claimants would justify representations by the Legation which would inevitably be considered an attempt to influence the course of pending legislation. I shall, in the absence of instructions from the Department to pursue another course, continue to refrain from expressing any opinion concerning the manner in which awards should be paid.

I have already, in the portion of despatch No. 282 to which special reference is made above, explained to the Department my belief that Judge Stanley’s efforts to influence the form of the proposed bond law are not consonant with his judicial position as a member of the Claims Commission.

Respectfully yours,

Arthur Buss Lane
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