Office of the Historian

817.812/851: Telegram

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

Managua, August 3, 1939—5 p.m.
[Received August 4—3:10 p.m.]

83. Somoza plans to leave for San José by air August 12 returning August 18. He offered to give me a copy of the draft treaty regarding canalization which he will use as a basis for discussions suggesting that I might send copy to Hornibrook, to aid in case of need. I made no commitment in this regard.

Cordero Reyes today explained the draft fully which provides in substance:

(1)
In accordance with the Somoza–Roosevelt agreement the United States will extend its cooperation to canalize the River San Juan and the port or Bay of San Juan del Norte for medium draft vessels for account of Nicaragua. Nicaragua declares this does not imply cession of territory and will continue complete sovereignty and control of the works to be turned over for use and administration.
(2)
Costa Rican existing rights of navigation are recognized. Nicaragua extends upon completion of the works the right of free navigation for the entire San Juan from lake to sea. Costa Rica cannot oppose or obstruct works in the upper section of the river not bordering its territory nor demand compensation in the event that later Nicaragua negotiates a treaty for a greater canal, unless Nicaraguan works to be constructed now occupy or prejudice Costa Rican territory.
(3)
Upon completion of canalization Costa Rican vessels may use the port, bay and entire river of San Juan and the Riofrio, San Carlos or Sarapiqui or Colorado using Costa Rican ports including the Colorado mouth under the same terms as Costa Rican [Nicaraguan?].
(4)
Merchandise in transit for Costa Rica is exempt from import charges. Costa Rican products may transit via San Juan to Costa Rica or to third countries under the same conditions. Imports into Nicaragua may pass in transit via the river Colorado without duty and Nicaraguan products for the Nicaraguan east coast or third countries also.
(5)
Costa Rica grants Nicaragua permission to make the necessary studies and works for construction operation and maintenance including the use of water in the river Colorado to secure the necessary depths of waters in the said canal without right to indemnification, distinct from the rights of navigation Nicaragua now grants. Works in Costa Rica remain subject to the complete sovereignty of that country and subject to its laws provided the purpose for which constructed is not prejudiced.
(6)
These mutual concessions do not prejudice either state in the event that Nicaragua negotiates a treaty with a third state for the construction, operation and maintenance and defense of a larger interoceanic canal in which case territorial and navigation rights of both countries shall be considered to be such as at present defined and delimited.

Cordero Reyes pointed out that they will not indicate to Costa Rica what aid the United States is to extend and that publicly the accord will rest on the Somoza–Roosevelt letters. The entire agreement offers Costa Rica in rights of navigation much more than Costa Rica is requested to give in rights in the Colorado and fully protects her sovereignty. No mention will be made of the Nicaraguan proposal which he said was discussed at Washington for American troops et cetera, to use the route in time of war and the construction of four landing fields. Costa Rica will doubtless demand the right of navigating the Lake of Nicaragua which will be a trading point. No offer will be made of a right to cross to the Pacific. He foresees a request to divert the Colorado via the Tortugurro lagoons which Nicaragua cannot accept either for itself or because of possible danger to a future interoceanic canal.

He pointed out that both countries remained free and in status quo ante insofar as their rights to obtain settlement from the United States in the event of a future interoceanic canal. Nicaragua under the Washington Agreement will consider the present project as advance payment by the United States toward a future settlement.

Text by air mail22 direct pouch to the Department Saturday. I shall not forward a copy of the treaty to San José unless so instructed.

Nicholson
  1. Despatch No. 608, August 3, 1939, not printed.↩