810.154/9–2944
The Ambassador in Nicaragua ( Stewart ) to the Secretary of State
[Received October 9.]
Sir: I have the honor to refer to the Department’s instruction no. 1339, dated September 2, 1944, authorizing negotiations with Nicaraguan officials with respect to the future program of highway construction in which the United States is interested in Nicaragua, and to report that on September 27, 1944, I had an interview with President Somoza on this subject. I was accompanied by Mr. Finley, First Secretary.
. . . . . . . . . . . . . .
Summarizing the results of our conversation, it will be noted that the President:
- 1)
- Tacitly agreed to forego the construction of the Jinotega–Condega stretch, thus, in effect, ratifying the Sébaco–Estelí–Condega route as that of the Inter-American Highway;
- 2)
- Refused to accept an improvement of the presently existing bullock cart roads between Matagalpa and Jinotega;
- 3)
- Is convinced that the La Fundadora route to Jinotega is the most feasible from all points of view and is willing for an impartial engineer to survey that question;
- 4)
- Is willing to have the Matagalpa–La Fundadora–Jinotega road constructed to 10%–30 meter specifications, providing the width meets P. R. A. standards, and is willing to consider a shorter route than that proposed via Apanas if a feasible one can be found;
- 5)
- Accepts to place all of his equipment on the Atlantic Highway38 (except enough to provide maintenance of the Sébaco–Estelí–Condega–Honduran Border section, which has recently been traversed by Mr. James of P. R. A. in the midst of the rainy season without difficulty) immediately the road to Jinotega is finished;
- 6)
- Accepts the 10%–30 meter standard for the Atlantic Highway.
It would appear from the above that a considerable saving to the United States will result from this arrangement. Roughly, this saving will be ⅔ of the cost of the projected road from Jinotega to Condega, or about $2,000,000, and ⅔ of the difference of the cost of the road from Matagalpa to Jinotega by reason of the reduced standards, or about $500,000—a total of about $2,500,000. More rapid completion of the Atlantic Highway is also obtained, as well as maintenance of the Sébaco–Estelí–Condega–Honduran Border section. The final completion of this latter stretch, however, will be left until the Atlantic Highway is completed.
With reference to the ability of Nicaragua to finance the remainder of the road program, I remarked to President Somoza—as has been stated above—that the credits from the Export-Import Bank had now been practically exhausted. I pointed out that the completion of the route Matagalpa–Jinotega–Condega would cost Nicaragua about $1,600,000. The President retorted that Nicaragua would be prepared to pay $2,000,000 to get what it wants. Since as a result of our conversation the President decided to forego the construction of the Jinotega–Condega section, and since the further expenditures on the part of Nicaragua (⅓ of $1,000,000 to build the second-class road from Matagalpa to Jinotega, and ⅓ of $2,000,000, the cost of completing the Sébaco–Estelí–Condega–Honduran Border section) totals only about $1,000,000, I did not press the President for any further commitment on this point.
I should be glad if the Department would inform me whether the [Page 203] above is acceptable and, if so, whether it is desired that I initial a memorandum of agreement with President Somoza on the bases indicated.39
Respectfully yours,
- “Highway to the Atlantic,” also known as the “Rama Road.”↩
- On October 26, 1944, the Embassy was instructed to ascertain from President Somoza whether he would be prepared to negotiate a revised Project Statement on the basis suggested in the Embassy’s despatch No. 2590 (810.154/9–2944). A revised Project Agreement was sent to the Embassy in February 1945 and this draft was then discussed with President Somoza, who emphasized that his oral acquiescence was binding. Agreement was later reached with President Somoza that the Inter-American Highway should run Condega–Estelí–Sébaco, with a spur to Matagalpa and Jinotega, not to pass through La Fundadora, but 9 kilometers south of the President’s farm (810.154/9–1045).↩