File No. 817.00/1775.

The American Minister to the Secretary of State.

No. 28.]

Sir: I have the honor to transmit herewith copies of correspondence exchanged with the Consul at Bluefields with reference to the political conditions on the Atlantic Coast.

[Page 1023]

On receipt of Mr. Clare’s letter of March 4, reporting that there was great dissatisfaction and talk of a separation movement, I called his attention by telegram to the Secretary of State’s speech in Managua1 regarding a closer union between the Atlantic and interior portions of the country.

From information which had already come to me through the Collector General of Customs I had reason to believe that the dissatisfied elements were endeavoring to sound out the Consul and the Customs officer in Bluefields on the question of secession, and I therefore referred to the Secretary’s statement as an indication to Mr. Clare of what should be his attitude in the matter.

In his telegram of reply2 he stated that he would make a full report on the subject to the Department and to the Legation.

This talk of separation is nothing new as will appear by reference to the Department’s instruction to Mr. Northcott, No. 9, of April 3, 1911,3 (File 817–00/1547) transmitting a copy of a report of the then Consul, Mr. Lee, and the agitation, which is an inheritance of the days of the Mosquito protectorate, will probably continue until new means of communication are opened between Bluefields and Managua (as proposed under the loan arrangement with Messrs, Brown Brothers and Seligman) and the interests of the two sections, which at present have little in common because of the difference in population and pursuits, are brought more into harmony.

The immediate point of controversy now being waged is a financial one, but the central Government is unable to furnish prompt relief because the country as a whole is in a difficult situation on account of matters not having yet adjusted themselves to the new system of customs collection.

I have [etc.]

George T. Weitzel.
[Inclosure 1—Extract.]

The American Consul at Bluefields to the American Minister.

No. 28.]

Sir: I have the honor to acknowledge the receipt of the following telegram, on yesterday’s date, from you:

The Secretary of State will arrive at Corinto and Managua on March 5th, and will remain until the 7th.

On the 4th instant I sent you the following telegram:

I should be glad to have the following laid before the Secretary of State: Constituents of Representative Hooker uphold his action relative to Article 170 of the Constitution of Nicaragua. Commercial and financial conditions are critical in the extreme. Public employees unpaid for some months. Silver, the only currency, is fast disappearing from circulation. Many representations of new enterprises are here awaiting announcement of our policy in Nicaragua. Rumors of another revolution if the state of affairs remains unchanged. Only popular elections will satisfy this Coast.

You no doubt read in the papers of Managua that all the municipal officers resigned in Bluefields rather than take the oath to obey the Constitution as far as Article 170 is concerned. The people feel that the promises made to them have not been kept.

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I am sorry to report that feeling against Americans here at present is not as cordial as it has been. Two attempts were made last week to destroy American property by fire, but luckily they were discovered in time and no damage resulted. Whether these were direct threats against Americans or whether they show the discontent and dissatisfaction existing is a matter of conjecture.

The merchants and fruit companies seem to be waiting some definite announcement relative to the financial policy of the Government, or in other words, as they express it themselves, “We wish to know whether the Nicaraguan Government is going to get the loan, and if they do get it what they are going to do with it.” This is rather a crude way of expressing it, but that is how they seem to feel about it. In the meanwhile they are not going to pay a premium to import soles. Soles a few months ago were worth 40 cents gold, today they are at 42–3/4 to 43.

I do not put much faith in this talk about another revolution, as I fail to see where they would get the money, arms or men to start it, but at the same time it would not take a great many well-armed men to take and hold this coast against any force that could be sent from the interior with the object of recapturing it. The people know this, and the next time they strike it will mean the independence of the Coast. They will not allow themselves to be fooled another time.

I have [etc.]

Arthur J. Clare.
[Inclosure 2.—Telegram.—Paraphrase.]

The American Minister to the American Consul at Bluefields.

Your No. 28, and telegram of March 4. The latter was shown to the Secretary of State. Since then National Assembly has approved the new monetary legislation and supplementary loan providing for sound currency and banking system which it is believed will improve economic conditions of Atlantic coast as elsewhere in Nicaragua.

Telegraph your views as to present situation in Bluefilds district and what publicity was given to the Secretary’s speech encouraging the closer union between the Atlantic coast region and the interior.

Weitzel.
  1. See pp. 1117 and 1120.
  2. Not printed; it adds no new data to those given in Inclosure 1, following. (File Nos. 817.51/401 and 817.00/1771.)
  3. Not printed.