611.1731/168: Telegram

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

46. Referring to Department’s telegram No. 20, Feb. 28, 7 p.m.

Point 3. We believe the Nicaraguan negotiators fully understand purpose and purport of article 5, and while I, of course, shall make no suggestion to that end it is possible the Nicaraguan Government will solve this question by converting currencies at present official rate of 1.10 prior to the date of signature of agreement. Minister of Hacienda so intimated to us prior to February 27. As I endeavored to explain by telephone on Feb. 27, the present system of conversion at par is on£ of convenience only and could be changed without further legal or other authorization.

Point 7. Both on the basis of what Nicaraguan negotiators have told us and of our own observation of operation of present system, there is no intent to fix a quota with respect to importations of specific articles or from specific countries. In his despatch No. 27 of October 26, 1935,37 Vice Consul Ray did not wish to imply that there was such an intent. His comments in last paragraph of despatch were based on his having been told by member of Commission of Control the efforts to dump cheap goods from Panama, imported by certain merchants as personal baggage, would be frustrated by the requirements mentioned in the Consulate’s despatch No. 27.

  1. Not printed.