Memorandum of Conversation, by the Divisional Assistant of the Division of Caribbean and Central American Affairs (Wood)

Participants: Ambassador Sevilla Sacasa of Nicaragua
Mr. Braden—A–Br 42
Mr. Wood—CCA

The Nicaraguan Ambassador requested an appointment and called on Mr. Braden at 12 today. In his conversation he mentioned four topics, which are as follows:

Lend Lease—The Ambassador stated his Government had endeavored to pay lend lease sums in arrears and had asked a loan of the Export Import Bank. He said that the Bank had asked him to [Page 1092] come in today for the decision. (Note—I am informed that the Bank’s decision is negative.) The Ambassador stated that lend lease payments would be made in any case since a commercial loan had been arranged by the Banco Nacional de Nicaragua with the Bank of America at San Francisco. The loan, to total four and one-half million dollars, is to cover a multitude of internal projects, particularly to finance agricultural needs. He stated that the proposed loan had progressed to the point where all that would be required was the acceptance of the Banco Nacional of the conditions. It is the Nicaraguan Government’s intention to divert—say $150,000 immediately from the loan for purposes of paying part of the lend lease sum due.43

[Here follow the Ambassador’s comments on the remaining topics of discussion: (2) Central American Union, and (3) and (4) the political situation in Nicaragua.]

  1. Spruille Braden, Assistant Secretary of State for American Republic Affairs.
  2. The approximate sum due for charges through May 31, 1946, was $580,000, according to Department’s note of December 12, 1946, to the Nicaraguan Ambassador, enclosing statement LL–9 in regard to the lend-lease account of Nicaragua (817.24/12–1246).