810.154/3081: Telegram
The Ambassador in Nicaragua (Stewart) to the Secretary of State
[Received 8:40 p.m.]
559. Colonel Kelton, Director of the Pan American Highway, is in Managua and last night he conveyed to President Somoza5 and me the information contained [in] the Department’s circular telegram of September 14, 7:00 p.m. The Colonel stated that the decision of the War Department to close down the work on the highway would not seriously affect Nicaragua as he thought it would be possible to build the few remaining miles of unfinished highway as far as the Costa Rican frontier. Furthermore, he believes that it will be possible before November 1 to construct a passable all-weather road on to the Honduran border.
President Somoza did not appear to be unduly concerned. Incidentally Colonel Kelton told the President that it might be possible for the Nicaraguan Government to purchase some of the road building machinery now in the country.
I believe that the shutting down of the highway work will not seriously affect the economy of the country but rather will tend to place it again on a more normal basis. As there is a scarcity of labor in Nicaragua, labor now employed on the highway will no doubt soon be absorbed in agriculture and other pursuits.
- Anastasio Somoza.↩