Foreign Relations of the United States Diplomatic Papers, 1939, The American Republics, Volume V

817.51/2608

The President of Nicaragua (Somoza) to President Roosevelt

Washington, May 22, 1939.

Excellency: I desire to express the sincere thanks of the Republic of Nicaragua for the many courtesies and the cordial hospitality which I have received during my visit in this country from the Government over which Your Excellency so worthily presides. The people and Government of Nicaragua are grateful to the United States for these significant evidences of friendship and mutual consideration.

The opportunity of knowing Your Excellency has been a source of real satisfaction to me and it has enabled me to confirm the impression which I had formed of your brilliant personality and your sincere and noble devotion to the ideals of Pan Americanism as well as your friendly sentiments toward my country.

I have been happy to tell you that we in Nicaragua have faith and confidence in our strength and ability to develop our country, to improve our agricultural possibilities, our mines and our small industries, to raise the standard of living and to advance our cultural attainments. But we realize that in an age of increasing specialization and interdependence we can utilize advantageously the counsel and friendly assistance of our neighbors, just as our aid and cooperation is useful to them. In this spirit of mutual helpfulness, I have thought it desirable to set forth certain of the objectives of my Government of interest to the United States in order to ascertain the possibilities of cooperation in our common benefit. I am hopeful that your consideration of these objectives will disclose ways and means in which we can cooperate for their attainment.

I

Adequate transportation facilities are a prime requisite to the development of the production and trade of a nation. It is the opinion of the Government of Nicaragua that it is of paramount importance to link together the productive regions of the east coast of Nicaragua with the more densely populated productive regions of the interior and the Pacific coast, and to provide a more direct channel of communication for commerce between Nicaragua and the United States. This objective could effectively be attained by the canalization of the San Juan River for vessels of moderate draft and if possible, by a complementary waterway from Lake Nicaragua to the Pacific. I desire to inquire whether the assistance of the Government of the United States might be extended to assist my Government in the realization of this project. Specifically it would be necessary in any event as a first step to have precise surveys and estimates, and I am hopeful that it will be feasible for the Government of the United States to send engineers of the United States Engineer Corps for this purpose.

II

Nicaragua also greatly needs additional transportation facilities in the form of roads and highways. The construction of certain sections of the proposed Pan American Highway through Nicaragua, part of which has already been surveyed and a portion built by the Nicaraguan Government with the assistance of the Bureau of Public Roads of your Government,¹¹ and of essential lateral feeder roads would permit of the expansion of agricultural and mineral production in the principal producing areas of the Republic. To this end, the Government of Nicaragua requests the loan of the services of engineers of the Bureau of Public Roads for engineering advice and supervision, and the extension of credit facilities to finance the purchase from United States manufacturers of equipment and materials not available in Nicaragua.

III

I consider that the development of the foreign commerce of Nicaragua and of economic relations between Nicaragua and the United States will be facilitated by the prompt payment at all times of commercial obligations to United States nationals and concerns, and by the elimination of unusual fluctuations in the rate of exchange of the cordoba and those arising out of the irregular timing of international in-and out-payments. The problem of the former accumulated commercial arrearages has been solved within the limits of Nicaragua’s economic resources in an agreement concluded with the National Foreign Trade Council, Inc., on September 13, 1938,¹² the terms of which are being and will continue to be carried out. To achieve the further objectives referred to a line of credit in United States currency to the National Bank of Nicaragua would be desirable.

IV

Nicaragua is especially desirous of encouraging the large-scale production of suitable non-competitive agricultural products which will complement production and find a market in the United States. My Government will, therefore, greatly appreciate the cooperation of the Government of the United States in the study and development of such products which may provide the United States with necessary and assured sources of supply.

V

In view of the desire of the Nicaraguan Government to reopen the Military Academy of the National Guard for the purpose of facilitating the adequate training of officers of that organization, it is requested that an arrangement be concluded for the detail of a qualified officer of the United States Army to act as director of the Military Academy.¹³ It is also desired to obtain the services of a qualified aviation officer to act as instructor in the Air Corps of the National Guard.

VI

The investment of new foreign capital and technical knowledge in the development of the agricultural and mineral resources of Nicaragua is of supreme importance in the carrying out of a sound program for the economic development of the country, arid I wish to assure Your Excellency that the Government of Nicaragua will encourage iii every way the valuable cooperation of United States citizens who have invested or who in the future may invest their capital and technical knowledge in the expansion of the Nicaraguan economy.

In this connection I wish to announce that the Government of Nicaragua will take forthwith the necessary steps to ensure that adequate dollar exchange shall be provided at all times under the most favorable conditions possible to enable United States holders of the Guaranteed Customs Bonds of 1918 to transfer payments of interest and amortization.

In closing, I wish to record my personal conviction that the successful carrying out of these objectives cannot fail to give renewed vigor to the effective participation of our two countries in the furtherance of these American ideals to which the nations of this hemisphere are devoted.

I avail myself [etc.]

A. Somoza

11. See section entitled “Cooperation of the United States With Other Governments in the Construction of the Inter-American Highway,” Foreign Relations, 1937, vol. v, pp. 175 ff.
12. La Gaceta, Diario Oficial, September 26–30, 1938.
13. For text of agreement providing for a military mission, signed at Washington May 22, 1939, see Department of State Executive Agreement Series No. 156, or 53 Stat 2435.