817.51/2507

The Minister in Nicaragua (Lane) to the Secretary of State

No. 358

Sir: I have the honor to transmit herewith copies of the Spanish and English texts of the report of the Collector General of Customs of Nicaragua (Mr. Irving A. Lindberg) for the calendar year 1933.3

When I received the English text last week, I called on Mr. Lindberg and expressed my surprise that the report was addressed to the President of Nicaragua, the Minister of Hacienda of Nicaragua and the Secretary of State of the United States. I pointed out that while the procedure followed was undoubtedly merely a continuation of the practice during the intervention, I considered it most unwise to give to the public a false impression of the present attitude of the Government of the United States, which wishes in every way not only to respect [Page 578] the sovereignty of Nicaragua, but to give tangible evidence thereof. I referred specifically to current charges that we are exercising an economic and financial control over Nicaragua and said that if it were known that he addressed his reports to the Secretary of State, it would of course be assumed that he received his instructions from the Department.

Mr. Lindberg made the point that he had been appointed on the nomination of the then Secretary of State; that he had always submitted his reports to the Secretary as a matter of courtesy; but that he would be happy to comply with my wishes. Accordingly he promised me that the Spanish, which he said was the official, text of his report for 1933 would not be addressed to the Secretary of State. As the English text had already been printed and issued, it was not possible to make the desired change therein.

I likewise raised the question of the propriety of Mr. Lindberg continuing what has been the regular practice of reporting monthly to the Secretary of State on funds handled by the Collector General of Customs (see despatches of February 20, May 24, June 8, June 26, and July 17, 19344). Mr. Lindberg replied to the effect that in view of there being American bondholders interested in the revenues of the Nicaraguan Government, he considered it logical to furnish a copy of the report to the Secretary of State. There would seem to be, however, no good reason for reports to be sent to the Secretary of State of the United States, unless they are also sent to corresponding officials in the other countries of which the bondholders are nationals. I so expressed myself to Mr. Lindberg.

Mr. Lindberg said that, unless the Department should request copies of the regular reports, he will refrain from submitting them in future. While it may be true that the reports which have been customarily submitted by Mr. Lindberg’s office in the past contain information of value to the Department, I consider that the principle involved, to which I have made reference, is important enough to outweigh the disadvantage of not having such prompt information regarding the revenues of the Nicaraguan Government.

Because of the general attitude prevailing towards foreigners now in the employ of the Government of Nicaragua, as outlined in my confidential despatch No. 325 of July 13, 1934,5 I consider that the Legation must exercise great care in order that its relations with such officials be not misinterpreted.

I should be grateful if the Department would indicate whether my action meets with the Department’s approval.

Respectfully yours,

Arthur Bliss Lane
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