New Britain herald., 1926-12-31
.DIAz SUFFERS
 BAD REVERSES
Troops Repulsed With Loss of
 Life-LiberalS Strong

Washington, Dec. 31.--{P}- The civil war in Nicaragua judging from 1 the latest cable adgices, apparently | has progressed to a most serious stage for the conservative forces of President Diaz.
 | Coupled with the news that an ! American censorship had been es- abolished in the neutral zones and later lifted. and reiteration of | Diaz' charges that the Sacasa liber- als were receiving aid from Mexico, detailed word has come telling of the severity of the defeat of President Diaz troops on the east coast and of plans of the liberal army to march cn Managua, the country's capital, in the interior.
 Meanwhile, Sacasa, in a message 10 the Associated Press. declares the landing of American naval forces in Nicaragua was unnecessary since no lives or property needed protection
 
 the move was to protect the de facto government of Adolfo Diaz, who counts on the effective influence of Wall street bankers"
 Pedro J. Zepeda, Sacasa's chief agent in Mexico City, was authority for the statement that the liberal chieflain, who has been recognized by Mexico. was preparing to march on Managua, seat of Diaz, who has been accorded American recognition, with absolute confidence of victory. He said Sacasa had two army corps of 2,000 men each.
 Dinz's Recent Defeat
 Diaz defeat in the last few days fighting in which 70 have been re- ported killed on both sides, was ascribed by the President himself, in Managua dispatch. 10 poor com munication, his orders to withdraw two or three days before the battle having been delayed until after the fighting began. He knew his forces were outnumbered, he said, and it was useless to put up 6 fight
 Conservative troops who withdrew to q neutral zone and were disarm- ed by American marines. were re- ported proceeding to Rama to join other troops there, while three large detachments of liberals are on their way to La Cruz, 16O miles from the mouth of the Rio Grandc.
 Seventy-one wounded liberals and 5S wounded conservatives, many in a serious condition, have arrived at Bluefields, another neutral zone, from Las Perlas. Bluefields is de- scribed as a huge hospital, with American navy doctors administer ing aid in the serious cases.
 Diaz's latest charges that Mexico was assisting Sacasa was made in a cablegram to the Nicaraguan lega- tion here from Cuadra Pasos, minis ter of foreign affairs in the con- servatiYe cabinet.
 The message said that the dip lomatic ministers of Mexico in Cen tral America, without concealment are the agents for the revolution" and added that "a new Mexican military expedition" was on it's way ito land on the Pacific coast"
 SacaSa's Message
 Sacasa, former vice president of Nicaragua, who had been requested by the Associated Press on Decem- Der 27 to state his attitude on the neutralization of Puerto Cabezas by Rear Admiral L.atimer, in command of American naval forces there, said in his message, dated December go, that the warships Denver and Cleve- land. without any record of any abuse Of foreign interests. violently disemharked troops, machine guns and cannons, and with bellicose dis play, my small presidential guard and my private residence were sur 
 He then was notified, he said, Of the establishment of the neutral zone, which, he added. had impeded all his movements and isolated and relegated" him to indefinite &C., ton,"
 He said he would remain on Nicaraguan soil. calling for the "de- posit Of the national sovereignty confided in me legitimately by the Nicaraguan people."