Papers Relating to the Foreign Relations of the United States, 1927, Volume III
711.1711/6
The Minister in Nicaragua (Eberhardt) to the Secretary of State
[Received March 14.]
Sir: In compliance with the Department’s telegram No. 44, of February 21, 7 p.m.69 I have the honor to transmit herewith the full text of two notes, with translations, from President Diaz in which there has been proposed a treaty of alliance, defensive and offensive between the United States and Nicaragua.
I have [etc.]
The Nicaraguan Minister for Foreign Affairs (Quadra Pasos) to the American Minister (Eberhardt)71
Excellency: Many are the misfortunes which Nicaragua has suffered during the past year and the months of the present year which have transpired, and great is the experience acquired by its people through these misfortunes whereby they are enabled to appreciate and determine the future of the Republic. A series of lamentable circumstances, of which it has been the lot of Your Excellency to be a witness, have placed my country in the gravest peril recorded in its history, menacing its sovereignty, independence and every institution which supported its social and political structure. In former times the quarrels of the parties, in which public opinion is profoundly divided, often have been the source of great misfortunes; but although Nicaraguan differences have been manifested in more or less intense civil war, peace has always returned without the very bonds of the Republic being strained to the peril of its very existence as an independent and Christian nation.
In these sad days one of those unjustified conflicts has furnished the occasion for the Government of Mexico to display before the world its tendencies to intervene in this country. …
. . . . . . . . . . . . . .
From the consideration of these facts there has been imposed on my Government the necessity of giving attention in a substantial and immediate manner to the safeguarding of our independence by seeking a customary way in the international world, whereby weak republics guarantee their own existence through friendship and alliance with the strong. It is undeniable that the Great Republic, which Your Excellency so worthily represents, was constituted in this hemisphere from the beginning of its independence to be the natural safeguard of the smaller countries which are beginning to develop their resources amid the accidents and dangers to which their weakness and the process of their development in the presence of other nations expose them.
Holding this thesis, the policy of my Government, in so far as its foreign relations are concerned, is based on the greatest confidence in the Government of the United States, and on the desire to strengthen more and more its relations with it, so as to strengthen our independence, safeguard our sovereignty, and make stable our institutions, and, at the same time, augment the economic resources, put our administration [Page 471] in order, consolidate the public liberties, and banish the use of civil war as a means of settling differences of opinion of Nicaraguans in purely political matters.
Inspired by these considerations, His Excellency President Adolfo Diaz has instructed me to manifest to Your Excellency the desire that you make known to the Department of State the desirability for Nicaragua of concluding with the United States a treaty of intimate alliance, which would strengthen the bonds between both countries and which might give to the smaller the advantages of tranquilizing its existence in order that it might enter resolutely upon the road to positive progress.
The geographic position of Nicaragua, with the possibilities of constructing through its territory a new interoceanic canal, makes it favorable for the investment of capital and the activity of Americans, and links it very closely with the destiny of the United States, which already has interests here, created by the Chamorro-Bryan Convention of 1914.72 My Government appreciates that it would be most desirable to establish de jure what time and history have created de facto between our two countries. Moreover, this appreciation of the matter in the form of an alliance has an antecedent most worthy of being taken into account. On December 1, 1884, General Joaquin Zavala, ex-President of the Republic, a Plenipotentiary of Nicaragua, and Mr. Frederick T. Frelinghuysen, Secretary of State of the United States of America, concluded a canal treaty,73 article II of which reads textually: “There shall be a perpetual alliance between the United States of America and the Republic of Nicaragua, and the former agree to protect the integrity of the territory of the latter.”
To my Government it appears that if an article were established as the backbone of the treaty expressly and formally guaranteeing the sovereignty, independence and integrity of Nicaragua it would be very useful to take advantage of the opportunity afforded by this same treaty to establish other points in which we would be afforded the means of obtaining resources for stabilizing our economic situation disturbed by the present crisis and of commencing a progressive movement of administration. We should also be able to take advantage of the same occasion to the end that peace might be bound up in this operation with the exercise of a Government of order, founded on the will of the people, in order that it may occupy itself with the maintenance and promotion of its great interests.
With the express instructions of His Excellency, President Diaz, I beg Your Excellency to present to the Department of State the project which has been set forth in the body of this note, in order [Page 472] that, if the Department should think it opportune, we might commence the discussion of the details, the manner and the form of realizing it as soon as is demanded by the painful circumstances of the grave crisis through which Nicaragua is passing.
I avail myself [etc.]
The Nicaraguan Minister for Foreign Affairs (Cuadra Pasos) to the American Minister (Eberhardt)75
Excellency: For the better study of the proposal which my Government made to the Department of State in note No. 4 which on the 19th instant I had the honor to address to Your Excellency, His Excellency President Adolfo Diaz has instructed me to put in concrete form the essential points which might be included in the treaty proposed in that note.
It is the desire of my Government to conclude with the Government of the United States a treaty of alliance, defensive and offensive, for the safeguarding of the common interests of both peoples and for the enhancement of the friendship which happily has always existed between Nicaragua and the Great Republic of the north.
The principal object of the said treaty will be the guarantee by the United States, as the greatest power of the continent, of the sovereignty and independence of Nicaragua.
The United States and Nicaragua will also guarantee, within the limits of their respective means, the rights created by the Chamorro-Bryan treaty, by virtue of which there was ceded to the United States the preferential option to construct an interoceanic canal through our territory and to install and use the naval bases mentioned in the said treaty. In return, Nicaragua would grant for a period of ninety-nine years, renewable for ninety-nine years more, all necessary powers to the United States to take measures and carry out plans with a view to assuring the efficacy of the reciprocal guarantees to both countries, which derive from the proposed treaty.
It is unquestionable that public order in administration and tranquility in the national existence of Nicaragua, both of which spring from a wise and impartial internal policy would be of urgent necessity for facilitating the work of the United States in guaranteeing our independence, seeing that, as a general rule, during the internal disorders there arise fatal occasions when the acts of other governments [Page 473] may endanger our own sovereignty. In view of this, Nicaragua, under the treaty, would empower the United States to intervene in order that there be maintained a constitutional government adequate for the protection of life, property and individual liberty which would have its origin in a vote of the people in a free election and to carry out faithfully all the obligations of our country which may derive from the new treaty and from the Chamorro-Bryan treaty, in so far as it refers to the opening of the canal and to the naval bases in which the United States is interested.
It is likewise necessary to insure an uninterrupted predominance of a wise economic policy as a source of prosperity. My Government considers that out of the understandings on this occasion it could find means conducive to this end, and, consequently, would pledge itself in the treaty, by virtue of the obligation of the United States to guarantee our sovereignty, independence and territorial integrity, not to contract any financial obligation while the treaty is in force without the consent of the Government of the United States. Neither would it make any concession of its territory by sale or lease to any other power, nor consent to the creation of jurisdictions over its territory by any other government, nor would it perform any act which would tend to impair our own independence.
These substantial bases of the treaty having been established, on which would safely rest the independence of Nicaragua, my Government would desire to take advantage of the circumstances of these close relations with the United States for the purpose of deriving therefrom the advancement of our interests and the progress of the Republic. This could be facilitated by agreeing to annex, in the form of conventions, three statutory plans to the treaty under discussion. These plans would be: financial plan, plan of security and national tranquillity, and sanitary plan.
Financial Plan
For the purpose of developing the economic interests of Nicaragua and of obtaining the positive welfare of its people, and at the same time for opening up a field for the activities of American interests and those of other foreigners who might desire to reside in Nicaragua, a convention would be concluded with the United States on the following bases:
Nicaragua would make a credit operation for the reorganization of its finances and for public works of positive progress. For this operation it would accept the advice of American experts who would be appointed by the President of Nicaragua on the recommendation of the President of the United States. Efforts would be made to obtain [Page 474] a loan of $20,000,000, which would be used more or less in the following manner:
| $7,000,000.00 | for the refunding of the internal and external debts; |
| $4,000,000.00 | to relieve the deficit caused by the debts and claims resulting from the recent revolution. These claims would be determined and appraised by a Mixed Commission in agreement with the Financial Adviser; |
| $9,000,000.00 | for the construction of the railway to the Atlantic and the founding of a loan bank, and for works of positive utility, among which we should enumerate the improving of our Army by the system mentioned later on. |
In order to be able to obtain such a loan under reasonable and easy conditions and to be able to facilitate the work of the rapid recovery of our prosperity, the Government of Nicaragua, in this convention, would engage itself:
- 1.
- To appoint an American Financial Adviser, recommended by the President of the United States. The Government of Nicaragua in the matter of finances would follow the suggestions of this Adviser, likewise in matters of the budget and in all appropriations which might have to be made in the different branches of the public administration.
- 2.
- Adopting the same system under which the present Collector General of Customs functions, the Government of Nicaragua would appoint a Receiver General of all the revenues of the Republic.
- 3.
- The Government would enact all necessary measures for the expeditious functioning of the Adviser and the Receiver.
- 4.
- The Government would accept all recommendations of the Financial Adviser for the improvement of methods of collection and disbursement of the funds of the State and for the creation, in case of need, of new taxes.
- 5.
- The sums collected would be applied by the Receiver in the following order: Payment of the costs of this service of collection, service of the debt, maintenance of the Army and the current expenses of the Government. Moreover, the Republic would not modify its customs duties without the approval of the Financial Adviser.
- 6.
- It would be understood that the costs of administration and supervison in no case should exceed 5% of the revenues of the Republic.
The Convention could be for 30 years, probably the period for the cancellation of the debt created by the loan. This period would be specified in agreement with the Bankers, similarly its renewal in case new operations of credit should be undertaken.
It is clear that the object of this Convention would be the improvement of our situation through a loan, the realization of which would be the determining motive of the convention.
[Page 475]Plan for National Security and Tranquillity
For the maintenance of order in the Republic and for the realization of constitutional guarantees in the exercise of our democracy, it is necessary that the Government be sustained by an army well disciplined and composed of soldiers trained in the idea of the strict fulfillment of duty. With a view to obtaining the establishment of an institution adequate to this end, the Government would create a Guardia Nacional, organized and disciplined by a corps of officers of the United States Army. To this end a convention annexed to the treaty would stipulate that the Government of Nicaragua would agree to give the supreme command of this Guardia Nacional to the officers of a military mission who might be recommended by the President of the United States. The guardia would have the supervision of all the arms of the Republic and would constitute its only armed force. When the training should have borne its fruits, the American officers would be substituted in the supreme command by Nicaraguan officers duly trained. The duration of this convention, considering the time for the possible formation of the first Army, would be for ten years, to be renewed for another ten years, if necessary.
Sanitary Plan
To progress, we must promote the public health, in order to have a healthy race capable of every activity and at the same time to be able to offer a safe and favorable field to useful immigration for the growth and development of the Republic. This would be done in a convention annexed to the treaty, the articles of which would be recommended by technical experts. The Government of Nicaragua would agree to entrust the direction of the work of sanitation to American engineers named by the President of the United States.
The points treated in this note are supported by the considerations set forth in my note No. 4 to Your Excellency. I beg you to consider this note as an annex to that document.
I avail myself [etc.]
- Not printed.↩
- File translation revised.↩
- The substance of this note had been transmitted to the Department in Legation’s telegram No. 49, Feb. 20, 1927; not printed.↩
- Foreign Relations, 1916, p. 849.↩
- The treaty was never perfected; it was withdrawn from the Senate Mar. 13, 1885. The English text is printed in S. Doc. No. 291, 55th Cong., 2d sess., p. 4.↩
- File translation revised.↩
- The views set forth in this note had previously been communicated orally to Mr. Eberhardt and transmitted to the Department in his telegram No. 49, Feb. 20, 1927; not printed.↩