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United States Department of State / Papers relating to the foreign relations of the United States, 1919

Nicaragua,   pp. 659-677 PDF (5.8 MB)

Page 662

with British claims against the Nicaraguan Government, with
special reference to the "Legation claim " of £19,800-0-0,
the De-
partment of State advises the British Embassy of the receipt of
a telegram of March 4, 1918, from the American Minister at Mana-
gua,7 reporting that, in order to reach an early settlement of the
claim, the Commission is willing to make a further concession and
award 29,000 in cash and £1,000 in bonds, and that they consider
this a very fair offer, in view of the character of the claim and the
large percentage of cash, as compared with the settlement of other
foreign claims in the same category.
The substance of the telegram from the Minister at Managua was
communicated to the British Embassy by telephone on March 7.
The British Embassy to the Department of State
No. 294                 MEMORANDUM
The British Embassy have the honour to refer to their memo-
randum No. 142 of the 29th January last with regard to the
proposed settlement of British claims against the Nicaraguan
The suggestion was made in this memorandum that it was ad-
visable, in view of the drastic reduction made by the Commission
in the claim of the London Bank of Central America, that this
claim should be separated from the remaining items included in the
"Legation. claim ", and that the remaining items should be settled
on the lines suggested by the Commission, the Bank claim being
reserved for future settlement.
The Embassy was informed verbally by the Department on the
7th instant that the Commission was unwilling to agree to the sepa-
ration of the Bank claims from the other claims, and had suggested
the payment of a sum of 29,000.0.0. in cash and £1,000.0.0. in bonds
in settlement of the whole Legation claim. The matter being some-
what urgent the British Government was informed by telegraph of
this verbal reply, and the Embassy have now received instructions
to inform the Department that, if the Nicaraguan Claims Commis-
sion are unable to consent to the separation of the Bank Claim from
the others the British Government will have no alternative but to
refuse the offer made by the Commission, reluctant though they
are to adopt such a course. The result of this will presumably be
that it will become necessary to deal with each claim separately, and
His Majesty's Government fear that an unfortunate impression may
7Not printed.

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