817.00/8604

Memorandum by the Chief of the Division of Latin American Affairs (Duggan)

Dr. Juan B. Sacasa called on Mr. Welles. After a preliminary exchange of courtesies Dr. Sacasa talked at some length of the political situation in Nicaragua, which he portrayed as very serious, holding no promise for law, order or public morality. Dr. Sacasa reviewed the difficulties he encountered when he took over the presidency, his efforts to combat the disastrous economic situation of the country caused by the world-wide depression, and his belief that the United States Government would lend him cooperation to overcome the difficulties with which he was faced. He went on to say that owing to the organization of the Guardia by the United States Government and to the fact that the agreement for maintaining the non-partisan character of the Guardia had been witnessed by Minister Hanna, he believed then and believes now that the United States has a continuing responsibility for Nicaragua’s welfare.

[Page 844]

Mr. Welles told Dr. Sacasa that the United States Government of course was desirous of Nicaragua’s welfare, that it wished to assist the Nicaraguan Government in every appropriate way, and that it is disposed to lend its cooperation for the improvement of Nicaragua’s economic position, in road building, in education, et cetera, but that political cooperation is out of the question. Mr. Welles reminded Dr. Sacasa that over twenty years of attempted assistance in the political realm had brought benefits neither to Nicaragua nor the United States. Mr. Welles also replied to Dr. Sacasa’s argument that this Government has a certain responsibility towards Nicaragua owing to the connection of the American Government with the Guardia. He stated plainly that with the withdrawal of the Marines on January 2, 1933, any special relationship which the United States Government may have had with Nicaragua terminated.

Dr. Sacasa said that he had seen General Chamorro and Adolfo Diaz in New York, both of whom had expressed a desire to pay their respects to Mr. Welles. Mr. Welles said that he would of course be pleased to receive them and suggested next Monday afternoon at three o’clock.