817.00/4640: Telegram

The Minister in Nicaragua (Eberhardt) to the Secretary of State

71. All members of the committee which recently interviewed Moncada have called upon me. They report nothing definite nor constructive. Moncada is reported to accept on principle the peace terms but is unwilling to give final answer without consulting his chief, Dr. Sacasa, with whom he will communicate as best he can and authorizes Liberal mission to do the same in his name, adding that he would accept any government in Nicaragua administered by the United States for the next 18 months in preparation for guaranteed fair elections in 1928; that when the time comes he will treat only with the American Minister in any event; that he will not for a moment consider any proposition which contemplates retention of the Presidency by Diaz and that his military position is today so strong that he expects to launch an offensive at once intimating that he will attack Boaco where the Conservatives are known to have concentrated a large number of troops preparatory to what Diaz states will be a concerted attack against the Liberals at Muy Muy and Tierra Azul while their comrades coming from Matagalpa will attack Moncada at Matiguas.

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There seems to be good reason to believe that while both sides profess to want early peace they are really expecting to engage within the next few days in one of the biggest and probably most important battles of the campaign. Liberals in and near Leon are reported to be actively gathering pack and saddle animals during last twenty-four hours.

Eberhardt