Memorandum of Conversation, by the Chief of the Division of Central America and Panama Affairs (Newbegin)

In the course of a conversation at Blair House yesterday afternoon, the Ambassador14 referred to the initial Nicaraguan payment on lend-lease which he said involved naturally some sacrifice on the part of the Nicaraguans but that they recognized their debt and were glad to meet their obligation.15 I expressed my appreciation.

I then told the Ambassador that speaking informally, I was not sure whether he understood thoroughly that it was unlikely that we would be able to supply any arms or ammunition to Nicaragua until the entire lend-lease debt was paid. I told him that I hoped that he had understood this because I wished our respective positions to be entirely clear and our relations handled on the basis of complete frankness. The Ambassador indicated that he had so understood … He inquired as to whether it would be possible to obtain replacement parts for equipment prior to full payment on lend-lease as distinct from any new items. I told him I could not give him a categoric reply [Page 846] but that speaking personally, I believed that replacement parts would be considered as a category apart and would be obtainable.

R[obert] N[ewbegin]
  1. The Nicaraguan Ambassador, Guillermo Sevilla Sacasa.
  2. In a letter of February 10, 1947, to the Nicaraguan Ambassador, transmitting copies of Statement LL–10 and supporting schedules covering charges made against the Nicaraguan Government for the period June 1–August 31, 1946, for Lend-Lease material, the Department expressed the hope that payment would be made in the near future of $608,000 on the grand total of charges amounting to $878,878.80 (817.24/2–1047). A payment on account in the amount of $100,000 was made by the Nicaraguan Government and transmitted to the Department in despatch 1508, March 26, 1947, from Managua (817.24/3–2647).