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

95. The President, who had a lengthy interview with General Somoza until 2 p.m., has just informed me that he has ordered Somoza to transfer the Guardia commanders in Matagalpa and Rivas (Captains Parodi and Bello, respectively) to other posts because of their having created friction with the civil authorities and with a view to avoiding trouble in connection with municipal elections November 3. The President quoted Somoza as saying that this order was a blow to him. He added that he expected Somoza to advise him this evening of the names of the officers to replace the above.

From the signs of preoccupation of the President and entourage and from the sounds of heated discussion emanating from the President’s office, I gather that the relations have reached the crucial stage. The President indicated, however, that the interview passed off quietly.