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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 665

tion claim which could properly be accepted by them having due
regard to interests of claimants; that British Embassy requests good
offices United States Government with view to securing such a settle-
ment and taking advantage present opportunity to presenting
From this memorandum it would appear that the British Govern-
ment was not willing to accept award of Commission. Depart-
ment's position in matter is that it is merely using its good offices to
bring matter to attention of Commission, nevertheless, it is inclined
to believe that, in order to make prompt settlement of this matter,
Commission might settle Legation claim for Eight thousand pounds
separating Bank claim and informing British Government that this
claim will be referred to High Commission after awards have been
paid, and that it will be given consideration and will be settled at
such a time as Government of Nicaragua is in a position in the future
to make settlement.
Should this arrangement for settlement appear to the Commission
to form dangerous precedent, Department prefers to leave matter en-
tirely in hands of Commission and will use its good offices in trans-
mitting Commission's reply to the British Embassy, at the same time
informing the Embassy that Commission is about to proceed with its
417.41/10: Telegram
The Minister in Nicaragua (Jefferson) to the Secretary of State
MANAGUA, April 7, 1918, 10 a.m.
[Received April 8, 8.30 a.m.]
In reply to Department's April 3, 5 p.m., the Commission wishes
to reiterate that it considers offer of £9,000 cash and £1,000
bonds on
[an] extremely liberal offer in view of the situation of the Govern-
ment of Nicaragua, an ally of the United States. The percentage
of cash is much higher than other foreign diplomatic claims which
they allege are equal in standing and equity to British claim. It
should not be overlooked that about 800,000 cash was not [sic] paid
from canal funds to English bondholders and that this sum included
interest on unpaid interest coupons. On all Nicaraguan claims all
interests, even on cash loans to Government, have been eliminated.
Confidential. The British Government received no official infor-
mation from the Commission as to itA appraisal of the bank claim,
but Minister Young told Commission unofficially that an offer of
£10,000 would probably be accepted. Martin, British Vice-Consul
and former manager of this same bank, has never advocated claim;

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