611.1731/143

The Chargé in Nicaragua (Warren) to the Secretary of State

No. 1174

Sir: I have the honor to acknowledge the receipt of the Department’s Instruction No. 356 of November 6, 1935, calling on me to seek an interview with President Sacasa, to refer to the conversation between an official of the Division of Latin American Affairs in the Department of State and Sres. Federico Sacasa, Henri De Bayle, and Guillermo Tünnerman, and to ask President Sacasa whether Nicaragua really desires to negotiate a trade agreement with the United States at the present time.

The Chargé d’Affaires saw President Sacasa late on the afternoon of November 29, 1935, and carried out the Department’s instruction under acknowledgement. President Sacasa stated at once that Nicaragua really desires a trade agreement with the United States and that its officials are awaiting the return of Minister Lane to continue negotiations. The President advised me that Don Federico had not discussed with him the subject of the conversation mentioned above and a few moments later Don Federico admitted as much. However, Dr. Federico Sacasa had mentioned to Don Francisco Castro, Minister for Hacienda, in the presence of the President that it was felt in [Page 842] Washington that the treaty negotiations were not progressing as rapidly as desirable.

During the Chargé’s visit to the President, Don Federico Sacasa was called in, so that he heard most of the conversation. As a result of that discussion, it is clear to the Legation that the Government officials can not decide what they should ask from the United States or what Nicaragua is in a position to grant in return. The President referred to sugar and expressed the hope that the United States could grant Nicaragua concessions so that it would be somewhat in the same position as Cuba, since (as he said) both countries have special relations with the United States. Regarding sugar and the matter of relations, the Chargé said nothing, believing that a matter more properly to be discussed by the officer actively in charge of the treaty negotiations.

President Sacasa, referring to concessions to be granted the United States, said that the Nicaraguan negotiators have a double difficulty in that they must consider not only the resulting changes in revenue under the present tariff but the potential changes arising under the draft of the new tariff law which the Ministry of Hacienda now has in hand.

The Chargé inquired of the President whether he would mention the matter of the trade agreement to the Minister of Hacienda so that it will be possible to proceed with discussions upon the arrival of Minister Lane and understood the President to indicate that he will so do.

Minister Lane should arrive in Managua on December 11, 1935, when this present correspondence will be brought to his attention. The Chargé will take occasion in the meantime again to request the President’s assistance in promptly renewing the negotiations upon the arrival of Mr. Lane.

Respectfully yours,

Fletcher Warren