817.51/1846: Telegram
The Acting Secretary of State to the Chargé in Nicaragua (Munro)
167. Legation’s telegram number 294 dated October 26, 10 a.m. The Department believes that Cumberland’s survey should precede and not follow a loan. In the first paragraph of the memorandum attached to Guzman’s letter to Stimson of May 15 it is assumed that the Government of the United States would want to make use of expert advice in studying and examining the different Nicaraguan problems before reaching a decision. To carry out this idea Cumberland would be sent to Nicaragua to undertake a financial survey so that the Department would be in a position to know the financial requirements of Nicaragua. The Department is of your opinion that it would be advisable to secure the approval of both parties in advance and it desires you to take the matter up with them in this sense as quickly as possible. Cable reply because Department must send early answer to Cumberland. Moncada favors the survey and will cable the Liberal Party to that effect.
Moncada suggests that the entire internal revenues be placed in the hands of American collectors. It is immaterial to him whether it [Page 416] is placed in the hands of the Collector General of Customs or whether a new organization is formed. He suggests that the former could be accomplished quicker and without any new agreements, and is in favor of doing so without associating it with the loan. He desires very much that Americans take over the collection and administration of the internal revenues as soon as possible. He fears that otherwise a fair election will be rendered much more difficult. Accordingly, you may discuss the subject with President Diaz and inquire whether he is still disposed to have Ham28 take over immediately the collection and administration of the internal revenues and to have a financial survey undertaken by an expert like Cumberland to determine Nicaragua’s future financial program.
- Clifford D. Ham, Collector General of Customs of Nicaragua.↩