817.51/11–244

The Ambassador in Nicaragua (Stewart) to the Secretary of State

No. 2655

Sir: I have the honor to refer to the Department’s instruction No. 1373, dated October 9, 1944,76 concerning the termination of the High [Page 1424] Commission in Nicaragua, in which the Department requests me to investigate and report “what steps have been taken or are contemplated finally to abolish the High Commission and whether any action by the Department is necessary to effect this end.”

Upon receipt of the instruction under reference, I addressed a letter to Colonel Irving A. Lindberg, dated October 14, 1944. Copies of these communications are enclosed.77 Reference is made in this connection to my despatch No. 2589, dated September 29, 1944,78 reporting upon the promulgation of Nicaraguan Decree No. 15, dated March 15, 1944, terminating the High Commission.

The origin of the High Commission was in Article 7 of the Financial Plan of 1917 as modified by the Plan of 1920.79 Both of these Plans had Nicaraguan legislative approval. While the Plans and the High Commission appear to have had the approval of the United States, there was no contractual arrangement to which the United States was a party. By reason of the redemption of the Guaranteed 5% Custom Bonds of 1918 (except a few for which checks have been issued pending presentation of the bonds), the two Plans appear automatically to have expired. By legislative action, moreover, the Nicaraguan Government terminated the High Commission with the promulgation of the Decree of March 15, 1944, on April 24, 1944.

Colonel Lindberg was appointed to the High Commission by the Secretary of State. When the Commission was terminated, it would appear, likewise, that his appointment automatically ended.

The Embassy is inclined to the opinion that no action on the part of the United States Government is necessary to terminate the special relationship created by the Plans and the High Commission.

Colonel Lindberg has read this despatch and approves its content and conclusion.

Respectfully yours,

James B. Stewart

[Discussion relating to termination of the official connection of the United States with the Customs Collectorship in Nicaragua continued into subsequent years.]

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  4. The Financial Plan of 1920 reconfirmed the offices of High Commissioner and Collector General of Customs. It was in the main a revision of the Financial Plan of 1917 with minor changes, such as budget increase of the Commission and deletion of obsolete provisions.