817.51/1742: Telegram

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

73. Legation’s 66, March 3, 9 p.m. [a.m.] I most earnestly concur in Diaz request that I recommend the Department approve loan of $1,000,000 now being proposed by New York bankers under conditions which will be explained to the Department. Diaz accepts bankers’ recommendation that a commission be formed consisting of the President of Nicaragua, Minister of Finance, Manager National Bank of Nicaragua and American Resident High Commissioner, for purpose of controlling all expenditures none of which shall be made except in installment as needed and only after approval of majority of the commission. Interest will be 7 percent and is to be paid only as money is used. Immediate payments to be met from loan are $300,000 to bank and $75,000 to Keilhauer.

Eberhardt