817.812/776

Memorandum of Conversation, by Mr. George H. Butler of the Division of the American Republics

Participants: Dr. Manuel Cordero Reyes, Chairman, Nicaraguan Delegation;
Mr. Butler.

Dr. Cordero Reyes1 said that he would like to speak with the Secretary2 about the Bryan-Chamorro Treaty,3 but that he would go over the matter with me first so that I could bring it to the Secretary’s attention. The substance of his comment follows:

1.
Nicaragua has no desire or intention of repudiating the Treaty, although there is some opinion in Nicaragua to the effect that the Treaty provisions entail the sacrifice of certain elements of sovereignty, and that the Treaty was not negotiated by a free and independent government representative of the Nicaraguan people. (The implication was that the Nicaraguan Government which negotiated the Treaty did so during the U. S. Marine occupation of the country.)
2.
The present Government of Nicaragua feels that if the United States does not exercise its right to construct a canal it will adversely affect Nicaraguan economy, since Nicaragua cannot undertake the work itself and will not allow any other powerful foreign nation to do so. Meanwhile, the country suffers because of the lack of adequate transportation facilities for its development.
3.
If the United States does not wish to undertake construction of the canal at the present time, the Nicaraguan Government feels that it would be only fair if the United States would undertake the work of canalization of the San Juan River. This would mean a great deal to Nicaraguan economy. Some estimates of the cost of this [Page 721] work have run from three to nine million dollars. The idea of the Nicaraguan Government is to negotiate a convention with the United States to provide for this work, and the cost would be deducted from payments made to Nicaragua in the event that an interocean canal eventually is constructed.
4.
The new Nicaraguan constitution contains provisions which would cover the negotiation of a convention for the canalization work. Therefore, the Nicaraguan Government is most anxious that such a convention be negotiated in time to be submitted to the U. S. Senate during the coming session of Congress.
5.
Nicaragua is prepared to extend to the United States the most ample facilities for defense measures—ports, the use of air fields, transit of troops in case of necessity, etc.
6.
The President of Nicaragua would like to come to Washington for a conversation with President Roosevelt in the event that an agreement with respect to the canalization of the San Juan River appears likely. (This, of course, would be a political move to strengthen the position of the Nicaraguan President in his own country.) Dr. Cordero Reyes expressed the opinion that an agreement between the United States and Nicaragua along the lines suggested would have a very favorable effect in the other American Republics.

I promised to bring the foregoing observations to the Secretary’s attention and to let Dr. Cordero Reyes know when the Secretary could see him. I also reminded Dr. Cordero Reyes of his conversation in Lima with the Secretary about the same matter,4 during which the Secretary had stated that he would give the matter his attention upon his return to Washington and that he would be glad to discuss the matter frankly and in detail with representatives of the Nicaraguan Government.

  1. Nicaraguan Minister for Foreign Affairs; he had served as Chairman of the Nicaraguan delegation to the Eighth International Conference of American States.
  2. Cordell Hull, then returning from Lima, Peru, where he had served as Chairman of the American delegation to the Eighth International Conference of American States, Lima, December 9–27, 1938. For correspondence concerning the Conference, see Foreign Relations, 1938, vol. v, pp. 1 ff.
  3. Convention between the United States and Nicaragua, signed August 5, 1914, Foreign Relations, 1916, p. 849.
  4. Memorandum of conversation not printed.