817.51/4–246: Airgram

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


A–115. Reference is made to the Department’s Airgram A–58 of March 5, 1946, concerning Nicaragua’s arrears in the amount of $86,063.38 in payment of its Export-Import Bank loan. I had a good opportunity to discuss the matter with President Somoza at El Genizaro.33

I allowed the President to read Airgram No. A–58. He said:

That he and Ambassador Sevilla Sacasa are not trying to link the Export-Import Bank loan to the Pan-American Highway accounts.
That he only wants Washington to wait a bit until settlement of the Highway accounts is accomplished in the hope that Nicaragua will then be in a better position to meet the obligation.
That because the audit of the Pan-American Highway accounts had proceeded slowly, he had had to use the money set aside for payment of the Export-Import Bank loan to finance the highway expenditures.

  1. The President’s country home.