417.00/261
The Chargé in Nicaragua (Dennis) to
the Secretary of State
Managua, November 25,
1926.
[Received December 9.]
No. 302
Sir: Referring to the third paragraph of the
Department’s telegram No. 120, of November 22, 6 p.m., in regard to the
formation
[Page 459]
of a Mixed Claims
Commission,57 I have the
honor to transmit herewith a copy of my letter of today to President
Diaz together with a memorandum attached thereto of various
conversations between the President and myself in regard to the Mixed
Claims Commission.
As soon as the law providing for the Commission is passed by Congress,
the Legation will transmit a copy thereof to the Department.
I have [etc.]
[Enclosure]
The American Chargé (Dennis) to President Diaz
Managua, November 25,
1926.
My Dear Mr. President: Completing the
memorandum of our conversation of November 17, transmitted to you
with my letter of the 18th, I am enclosing a further memorandum
embodying some of the points discussed with you in that conversation
and further elaborated in subsequent conversations.
I should greatly appreciate any corrections which you may see fit to
make to this memorandum, in the absence of which I shall consider
the impressions I have set down as substantially accurate.
With the assurance [etc.]
[Subenclosure]
Memorandum of Certain Points Discussed in
Informal Conversations of November 17th, 18th, 23rd and 24th
Between His Excellency President Adolfo Diaz and the American
Chargé d’Affaires, Mr. Lawrence Dennis
- 1.
- With regard to the settlement of the claims arising out of the
revolution of 1926 in Nicaragua, President Diaz discussed with
Mr. Dennis the plans contemplated by the Nicaraguan Government
for the determination of these claims and their subsequent
payment. President Diaz understood, naturally, that as there
would be many foreign claimants, this subject would be of
special interest to the American representative.
- 2.
- The President expressed the desire that these claims be
settled on a fair basis for the Government and the claimants. He
therefore contemplated the creation of a Special Commission for
the adjudication of the claims. This Commission, he thought,
should be composed of three members; one Conservative, one
Liberal, and one American. It seemed highly desirable that these
members, in addition to being reputable individuals, should
possess special competence for this work, but they need not be
attorneys at law. For the technical part of
[Page 460]
the work it seemed necessary to
have the services of an American, experienced in handling such
matters. It also seemed desirable to give this American a
special vote on the Commission in order to secure the maximum
protection for the interests of the Nicaraguan Government. A
foreigner, who was entirely detached from local influences and
interests, would seem to offer the best guarantee of
impartiality and fidelity to the interests of the Government.
Two Nicaraguans, even of different parties and unquestioned
honesty, might unconsciously favor reciprocally the interests of
claimants to the detriment of the Government, the Liberal member
favoring an excessive Conservative claim in return for a
corresponding concession and vice versa.
- 3.
- Mr. Dennis expressed his concurrence in the views of the
President and offered the suggestion that, inasmuch as it would
prove most costly for the Government to bring down to Nicaragua
a thoroughly competent American for this temporary work, lasting
probably not more than a year, it might seem desirable for the
Government to seek the services of the present High
Commissioner, Mr. Hill,58 who has had much experience with the settlement
of claims in Nicaragua, and whose present employment with salary
in this country would allow him to take on the extra duties of
the new claims commission for a small additional compensation.
Mr. Dennis thought that a suitable American Claims Commissioner
would cost the Government not less than $12,000 for a year’s
work, counting his traveling and other expenses, whereas Mr.
Hill would probably be glad to undertake the extra work for some
$3600 for the year. Mr. Hill would also have the advantage of
knowing conditions in Nicaragua better, by reason of his six
years’ residence here, than an American, however expert
otherwise, who came to the country for the first time.
- 4.
- President Diaz stated that he felt that were a large salary or
fee to be paid for the work of the American Commissioner, it
would be preferable to secure another expert for this work, but
that if Mr. Hill’s services could be obtained at only a nominal
addition to his present salary, this arrangement would be
indicated.
- 5.
- With regard to the settlement of the amounts awarded by the
Claims Commission the President expressed the belief that the
only practicable way would be to issue bonds guaranteed by a
second lien on the customs. This issue of bonds might be made on
more or less the same basis as that of the First Customs bonds
except that the Government might enjoy the option of purchasing
bonds for amortization at market prices at any time. Such
purchases of bonds could be most conveniently effected through
the agency of the Government owned National Bank, which has
special facilities therefor.
- 6.
- Mr. Dennis saw no objection whatever to such a plan.
- 7.
- The President stated that the necessary legislation for the
proposed Claims Commission was now under advisement by the
National Congress.
