815.00 Revolutions/111: Telegram

The Minister in Honduras (Lay) to the Secretary of State

102. Rebels under Ferrera reported as well disciplined, number estimated between 700 and 1,000 with about half armed with rifles and balance with machetes and pistols with 5 machine guns and 150 to 200 mules moving rapidly from west to east. Arrived Progreso Sunday noon. Although Government believed Tela would be attacked by Monday and had there 500 troops, Ferrera’s main body reported unofficially to be proceeding toward Yoro or in easterly direction. Government troops following. Marblehead at Tela Monday and returned Puerto Cortes this morning.

Majority of people behind the Government but are discouraged and fearful. Business at a standstill. Those with knowledge of Ferrera’s tactics in former years say that unless the Government can decisively defeat him-in the next 10 days he will be victorious. In spite of superiority in number of the Government forces and munitions, the mobility of Ferrera’s forces and his ability to outwit them has enabled him to avoid risking a decisive engagement with his limited munitions but has enabled him to gather supplies, attract adherents, rout and harass Government troops occasionally. This strategy is weakening the Government. Government is much concerned by its lack of funds to pay its troops especially as Ferrera is reported to be paying his soldiers well and regularly and that Government troops are deserting to his ranks. Government is making strong effort to secure funds.

Lay