810.154/801
Memorandum by the Secretary of State
The Chargé d’Affaires of Nicaragua came in and said he desired to explain that it was nearly impossible for the projected international highway to be constructed along the coast through Nicaragua closely paralleling the Government-owned railway. He said that the Government was dependent on this railway for receipts and also in connection with the basis of its money, and that it would wreck the entire situation to a considerable extent to closely parallel this railroad with the proposed highway. He then pointed out on a map a proposed new route leading a considerable distance into the interior over more or [Page 260] less mountainous localities and then back into the projected highway at the southern terminus of the railroad. This, he said, would be a substantially longer route and would cost more, but that the section it would pass through was more or less undeveloped and it would be very helpful in that respect. He said that he had discussed this situation with the U. S. engineers and other road officials and that they had now agreed to make a new survey over the proposed new route.