817.51/3–546: Airgram

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

A–58. The Department has learned that the Nicaraguan Ambassador recently informed officials of the Export-Import Bank that payment on its loan is awaiting a settlement of Inter-American Highway financial negotiations.31 The Nicaraguan government is now in arrears in the amount of $86,063.38 covering the period from December 31, 1945 to February 9, 1946. The Bank is informing the Ambassador that payments on Export-Import Bank loans should not be linked to the Pan American Highway and requesting payment of principal and interest due.

You are authorized in your discretion to discuss this matter with President Somoza and to point out the unfortunate impression caused by this action in the Department and in the Export-Import Bank. You may add that in addition to the lack of any connection between the Export-Import Bank payments and amounts due to Nicaragua on the Inter-American Highway, the former represents a fixed and determined amount whereas the latter is as yet undetermined.

  1. See memorandum by the Chief of the Division of Caribbean and Central American Affairs, February 27, 1946, and subsequent documentation on this subject, pp. 170 ff.